Gold Peeking out of Asymmetric Triangle Pattern – Technical Updates
Arslan Butt • 1 min read
Looks like another slow day as the market is securing shots for top-tier fundamentals. Gold is steady near one-year lows as the dollar slipped over uncertainty caused by Trump and Juncker meeting today.
The weaker dollar, the shaky stock markets and lower return on bonds are collectively impacting the prices of safe-haven assets.
How can the meeting between Trump and Juncker impact gold?
Well, this meeting is keeping the market on its toes. After the failure of the G-7 meeting, there’s a lot of uncertainty in the markets. The U.S. and Eurozone have threatened to impose tariffs on each other. You must refer to FX Leaders July 25 Brief. We explained what to expect from the meeting.
Anyway, the thing is, a positive wind about this meeting will drive bulls for the U.S. dollar and sellers for gold. The situation will be exactly opposite if Trump and Juncker fail to end the meeting with some win-win solution.
Gold – XAU/USD – Technical Outlook
Let me highlight the technical side of the instrument. The leading indicators, both the RSI (above 50) and Stochastics (at 74), are recommending bullishness in the metal. In addition to this, gold seems to cross the 100 periods of MA from below, supporting the bullish bias of investors. The closing of 2-hour candle below 100 moving average can hurt the bullish sentiment for today.
Gold – 2 Hour Chart – Asymmetric Triangle
Most importantly, gold seems to violate the asymmetric triangle pattern on the upper side. The violation of $1, 230 can lead it towards $1,234 and $1,238. Whereas, the market can stay bearish below $1,231 till $1,225. Good luck!