Gold Breakout of Descending Triangle – Earning Reports In Focus
Recalling FX Leaders’ July 17- Economic Event’s Brief, the ongoing trade war sentiments among US-China and a recent meeting between Russia and the US has aroused an immense amount of uncertainty in the market. Investors also seem to wait for the earnings reports from Goldman Sachs and Johnson and Johnson’s, keeping their investors out of the market to avoid sudden fluctuations. Consequently, the market sentiment has switched from risk-on to risk-off. Investors seem to move their investments into gold. Anyway, gold is still trading in the same range of $1,241 to $1,247.
In addition to this, a weaker dollar is also extending support to the bullion due to its negative correlation factor. The US central bank’s Chairman Powell is due to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC at 14:00 (GMT). Let’s see if Powell has anything to say about recent changes in tariff and trade activities, and how he plans to deal with this. We can expect him to speak about Inflation, GDP, as well as the unemployment rate which soared from 3.8% to 4%, hurting rate hike sentiments. It’s sort of a bullish sentiment for gold.
Technically speaking, gold is facing a resistance near $1,247 along with a support near $1,240. The 50 – periods EMA is supporting the bullish trend as gold just has a bullish crossover. The violation of $1,247 can extend the bullish rally towards $1,251. Whereas below $1,240, the market can stay bullish until $1,236.
Gold – XAU/USD – Trade Idea
Today, the idea is to stay bullish above $1,241 with a stop near $1,238 and take profit at $1,245. Good luck!
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