Gold gone oversold, can double bottom pattern help today?

On Monday, Gold is edging up as the bulls seem to catch the correction after prices dipped in the previous session. The precious metal is staying under a bearish pressure as the U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as today.

Why isn’t gold gaining safe-haven appeal?

Though gold is usually considered to be a safe-haven asset, the months-long trade disagreement between Washington and Beijing has urged investors to opt for the U.S. dollar in the hope that the United States has less to lose from the conflict.

Gold – Technical Outlook

On the hourly chart, gold is facing a nice support at $1,192. It’s a double bottom pattern which can reverse the bearish trend into bullish. At the same time, the precious metal has also gone oversold, which means investors may try to capture a retracement. On the upper side, gold is likely to face a very strong hurdle at $1,198.33.

So, the idea is to stay bearish below $1,198 to target $1,192. But the violation of $1,198 can give us a buying signal up to $1,202.

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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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