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Gold consolidates above $1,242 – Is it good time to go long?

Today, the gold prices recovered from a seven-month low after slow GDP data from China. The Greenback has been a prime mover of gold prices as investor focus stays on U.S. retail sales as well as Trump – Putin Summit today. Here’s an update on our gold trading signal…

Gold -XAU/USD – Fundamental Outlook

Just like the dollar, gold is also under the spotlight. As discussed in FX Leaders’ July 16 – Economic Event’s Outlook, the U.S. President Donald Trump, and his Russian counterpart Vladimir Putin will meet in Helsinki for the first designated meeting. The level of uncertainty remains at a peak as the agenda of the meeting isn’t clear. Therefore, the investors seem to hold their positions in gold in order to benefit sudden safe-haven appeal.

In addition, the U.S. earnings reports are also keeping the trading volume in check. Better than expected earnings reports may cause a sell-off in gold and anything worse can cause investors to buy up more gold.

Gold -XAU/USD – Technical Outlook

The trading in gold is very slow lately as the price is stuck in a tight trading range $1,241 – $1,247. On the lower side, gold is facing strong support near $1,237. It’s the trendline and 200 periods moving average which is supporting gold near $1,237.

Gold - Weekly Chart
On the upper side, $1,247/48 is likely to extend hurdle. The violation of $1,248 can lead gold prices towards $1,252.

Gold – XAU/USD – Trade Idea
During the ending hours of the Asian session, we opened a buying signal above $1,243 with a stop below $1,240 and a target of $1,247. Good luck!

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ABOUT THE AUTHOR See More
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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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