Risk-off sentiment drives bulls in Gold – Is it going after $1,232?
Arslan Butt • 1 min read
What’s up, traders.
The precious metal GOLD trades bullish due to anxieties about a potential decline in China’s economic growth amid an ongoing trade war and crashing equities. Investors seem to trade the risk-off sentiment, therefore, we are also supposed to follow them to catch a swing trade. Buckle up for it…
The global stock markets continue to trade bearish as investors focus on the US-China trade war, Italy debt crises and the uncertainties over Brexit. Thus, funds are moving from the stock markets to safe-haven assets such as bullion (gold and silver) and the Japanese Yen.
GOLD – Technical Outlook
On the daily chart, gold formed a bearish butterfly pattern which gave us an opportunity to capture a quick sell on Friday. But the scenario has changed a bit now. Gold is holding above a strong support level of $1,219 and it’s pretty much likely to violate the $1,223 resistance level. The bullish breakout may lead gold prices towards $1,224 (First Target) and even towards $1,232 (Second Target).
Gold – Trade Plan
Based on the above fundamental and technical outlook, we just shared a long-term forex trading signal to buy at $1,221 to target $1,224. Investors are advised to stay tuned to FX Leaders for more updates on gold. Good luck!