Sideways Channel In Gold – Can US Economic Events Cause a Breakout?

On Tuesday, gold inched down as the dollar hit a one-week high on the back of escalating global trade anxieties and economic upsets in emerging markets. The reason behind bearish gold is the same.

A stronger US dollar makes gold more costly for holders of other currencies. Which is another reason why the safe haven asset isn’t getting a boost in demand.

On the other hand, gold is stuck in a tight range of $1,197 – $1,204. Investors do need a solid reason to violate this trading range. What can it be? Did you see FX Leaders Sep 4 – Economic Event Outlook?

We spoke about ISM manufacturing PMI which is coming out during the New York session. So let’s wait for it. A bearish breakout can lead gold towards $1,190. Whereas, the violation of $1,204 can lead it towards $1,209 and $1,212. Good luck!

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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.
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