Extreme Quiet for Gold – U.S. Catalysts On The Cards

Fellas, this week has remained very quiet as the markets remained closed on Monday in the observance of Civic Day holiday. While the trading activity remained thin in the absence of top catalysts from the U.S. But the wait is over as the economic docket is loaded with few medium impact fundamentals which may help us capture a breakout trade in gold. Brace yourself…

Gold – XAU/USD – Fundamental Outlook

There’s no major catalyst that’s driving gold prices. It’s going to be trading in a very narrow range. Recalling our previous update, Gold Prices Trending Sideways – Are You Ready for Choppy Trading?, gold is still consolidating in the tight range of $1,207 – $1,215.

I hope the U.S. PPI data will overshadow the exiting fundamentals which are moving gold nowhere. I’m referring to the trade war and Fed rate hike sentiments which are causing a tug of war among traders.

Gold – XAU/USD – Technical Outlook

The yellow metal gold is testing 100 periods moving average at $1,216 and the bullish breakout can lead the gold prices towards $1,222. Considering the forecast of the U.S. economic events, the dollar can face the headwind, extending the support for gold.

Let’s say if the PPI figures disappoint, we may see a bearish reversal in gold, especially if it continues to trade below $1,216 until the release of news. On the lower side, the immediate support prevails at $1,207 and $1,204.

Gold – XAU/USD – Trade Idea

Honestly, it’s a very confusing situation as the market is still lacking volatility. Anyway, I will be looking to add a buying signal above $1,216 to target $1,222 and would like to stay bearish under $1,216. The bearish target is likely to be $1,207. Good luck!