Bears Dominate in Gold – Risk-on Sentiment In Play!
Gold has an immediate support at $1,221 and the violation of this level can lead it towards $1,215. Whereas, the resistance prevails at...
GOLD prices trimmed lower as equities turned bullish on better than expected earnings per share. Netflix EPS (earnings per share) soared to 0.89 vs. 0.68 forecast. While Goldman Sachs outperformed the forecast by 0.88 as its EPS came out as 6.28 vs. 5.4 forecast. It ultimately switched the market sentiment from Risk-off to Risk-on.
What does that mean?
Fellas, during a risk-on sentiment, investors look for investing in risky investments such as stock markets. That’s why we are seeing a bullish trend in the global stock indices. As a result, the safe haven demand for gold fades away, which is why we are seeing a bearish trend in gold.
Technical Outlook
The precious metal gold has completed 61.8% retracement at $1,222. Taking a look on the 4- hour chart below, the recent candle is half bearish and half bullish which is demonstrating the indecision between bulls and bears.
Gold has an immediate support at $1,221 and the violation of this level can lead it towards $1,215. Whereas, the resistance prevails at $1,227.
Gold – XAU/USD Trade Plan
Traders, I will be looking to stay bearish below $1,227 to target $1,221 and $1,215. While the buying entry is preferred above $1,215. Good luck!
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