Gold Hits Two Take Profits in a Row – Are you Ready for the Next?

The demand for safe-haven assets dampened after the Federal Reserve’s Chairman reinforced expectations of the dollar’s long-term strength. As we know, the rising U.S. interest rates tend to support the dollar and make gold more costly for other holders. Which is why the dollar took a bearish ride. Fortunately, we were able to capture movement both times. Here’s what to expect next…

Gold – XAU/USD – Technical Outlook

Technically speaking, gold is still in a strong bearish trend. Zooming out the 4- hour chart, gold is trading below 50- periods EMA which is likely to become a hurdle somewhere around $1,223.

Recalling our earlier update, Gold Violates $1,222 – Quick Update on our Trading Signal, we discussed how gold has come out of the descending triangle pattern and is likely to continue its selling trend until the next $1,212. The yellow metal traded inline exactly with the forecast.

What’s next?
Since we don’t have any major event in the United States, we need to rely on the technical indicators. At the moment, gold is testing a solid resistance level of $1,224 on the 3-hour chart and the violation of this can bring more bulls in the bullion market. Gold can gain support at $1,212 and we may see a tug of war between bulls and bears in this range.

Support Resistance
1214.32 1227.62
1210.22 1231.72
1203.57 1238.37
Key Trading Level: 1220.97

Gold – XAU/USD – Trading Idea

Traders, I will closely monitor $1,224 as gold can stay bullish above this with a target of $1,229 and bearish below $1,224 till $1212. 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.

Related Articles

Forex Signals April 18: Earnings on Good Friday Can Send DJIA Up or Down Under

15 hours ago

Save

WTI Crude Jumps 3.5% to $64.68 Amid Iran Sanctions and OPEC+ Cuts

18 hours ago

Save

Trade Tensions Fuel Gold—$3,500 in Sight?

18 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments