Gold Prices Trending Sideways – Are You Ready for Choppy Trading? - Forex News by FX Leaders
Gold - Sideways Pattern

Gold Prices Trending Sideways – Are You Ready for Choppy Trading?

Posted Wednesday, August 8, 2018 by
Arslan Butt • 1 min read

The trading sessions are a bit slow as the market enjoys summer holidays. So, we aren’t seeing any major movement in the market. Same is the scenario for gold, it’s been stuck in a narrow trading range of $1,207 – $1,215. But we still can place a position to benefit the choppy market. Watch out the trade plan…

Gold – XAU/USD – Fundamental Outlook

There are two major things which are confusing the market.

1 – The U.S. China Trade war is still on and it’s keeping the market uncertain. Overnight, Washington announced that it would inflict a 25% tariff on $16bn of Chinese imports, bringing the total amount being targeted to $50bn. The new duty will be in action on August 23 and will apply to 279 product types.

As a result, the stock markets are coming under pressure causing investors to move their investments to some safe assets such as gold and silver.

2 – The Fed’s two additional rate hike sentiments are underpinning the dollar and ultimately placing a bearish pressure on gold. This is another reason why investors are not placing bullish positions in the gold.

Gold – XAU/USD – Technical Outlook

The technical side of the market is still the same. Gold is trading below a descending triangle pattern to face resistance near $1,216 and that’s where I will be looking to take a sell position.

Gold - Sideways Pattern
Gold is still holding below 100 periods of MA which is likely to provide it solid resistance near $1,222. For the moment, the RSI and Stochastics are directing a bullish trend.
Investors are advised to keep a closer eye on $1,216 as the markets can stay bearish until $1,207. Whereas, the bullish breakout of $1,216 can lead gold prices towards $1,220.

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About the author

Arslan Butt // 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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