Gold Strives to Stay Above $1,200 while Risk Appetite Heightens

GOLD is trading slightly bearish on Friday but still holds near a more than 10-week high on weaker dollar. The sinking of stock markets has led people to seek gold as a safe haven especially after a drop in the US inflation rate. A weaker CPI figure has put a question market on the further rate hikes in 2019.

I was looking to trade the potential retracement until 38.2% Fibo level of $1,211. As you can see, gold is already coming out of the overbought zone after making a couple of doji and bearish engulfing candles at the top. This signifies a potential for a bearish retracement.

Support Resistance

1201.91 1236.48

1179.61 1248.74

1145.05 1283.31

Key Trading Level: 1214.18

Gold – XAU/USD – Trade Idea
In the late Asian hours, we opened a forex trading signal to sell gold below $1,217 to target $1,214 with a stop above $1,221. Let’s see how the market treats us.

Keep following FX Leaders for more updates on trading signals.