Gold Now Focused On $1,247 – Stronger Dollar Weighs
Arslan Butt • 1 min read
So far, it’s been a nice week for gold sellers as gold prices dipped below six month low, thanks to the Greenback, Fed and consistently changing fundamentals on the trade war. Today, one of the main catalysts behind a volatile and bearish move in gold is the latest update from Trump on Chinese investment restraint.
The U.S. President Trump sounded lenient as he announced that he will apply a strengthened security review process to cope with threats from Chinese investments to procure U.S. technologies instead of imposing restrictions. Additionally, we should focus on the Final GDP data from the U.S. as it may offer us another round of volatility today. Anyway, our forex trading signal on gold is doing well and heading towards our take profit level of $1,247.30
On the 4- hour chart, gold is trading in a bearish channel which is extending a solid resistance near $1,253. On the lower side, the immediate support prevails at $1,247. Violation of $1,247 is likely to lead gold prices towards $1,243.
The 50, 100 and 200 periods moving averages are signaling a bearish trend in gold.
Key Trading Level: 1256.13
Gold – XAU/USD – Trade Idea
Today’s idea is to stay bearish below $1,255 with a stop loss of $1,259 to target $1,247 and $1,243. Moreover, don’t forget to follow the final GDP of U.S. as it may drive heavy fluctuations in the market. Good luck!