Choppy Session In Gold - Trade War Tension Escalates - FX Leaders News
Gold - 4 Hour Chart

Choppy Session In Gold – Trade War Tension Escalates

Posted Monday, August 6, 2018 by
Arslan Butt • 1 min read

On Monday, gold began trading in a bearish trend despite the trade war sentiments. During the weekend, the trade war sentiments heightened on the comments made by POTUS (President of United States). Trump is considering increasing the tariffs from 10% to 25% on Chinese products.

On Sunday, Beijing announced that more than 5.2K American-made goods would be slapped with new taxes in reply to a threat by Donald Trump’s administration to inflict additional tariffs on $200bn of Chinese goods.

China has now inflicted tariffs on £85bn ($110bn) of the US goods. Last year, China imported nearly £100bn ($130bn) in goods from the United States. Despite all the uncertainties, the gold market is bearish as investors are more concerned about the two additional rate hikes in Sep and Dec 2018.

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Technically, gold is facing a strong trendline resistance at $1,213 along with a support near $1,207. The 50 – periods EMA is also suggesting a bearish bias of investors.

Gold - 4 Hour Chart

The violation of $1,213 resistance on the upper side can lead gold prices towards $1,217. Whereas below $1,207, the market can stay bearish until $1,201.

Gold – XAU/USD – Trade Idea

As per our forex trading signal, we are in sell below $1,213 with a stop above $1,215 and take profit around $1,209. Good luck!

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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