Gold Now Focused On $1,247 – Stronger Dollar Weighs

So far, It's been a nice week for gold sellers as gold prices dipped below six months low. Thanks to the greenback, Fed and consistently...

Gold - 2 Hour Chart - Bearish Channel in Play

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

Gold - 2 Hour Chart - Bearish Channel in Play
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.

Support Resistance
1252.5 1259.76
1250.26 1262
1246.63 1265.63
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!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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