Gold Testing 50% Fibonacci Retracement – Safe Haven Appeal Kicks In! - Forex News by FX Leaders

Gold Testing 50% Fibonacci Retracement – Safe Haven Appeal Kicks In!

Posted Wednesday, October 24, 2018 by
Arslan Butt • 1 min read

The bullion market is finally gaining some bullish momentum after the series of events which has increased the level of uncertainty in the market. A day before, GOLD prices edged up after hitting their highest in over three months as global political and economic changes underpinned safe-haven assets.

Most of the safe havens triggered after the European Commission refused Italy’s draft 2019 budget on Tuesday, stating that it brazenly violated EU rules on public spending and urged Rome to present a new one within three weeks or face disciplinary action.

On the technical side, gold has completed the 50% retracement at $1,229. At the same time, the 50 periods EMA is extending a solid support near $1,229 and we can expect a jump in gold prices above the same level. Whereas, the violation of $1,229 can lead prices towards $1,227 and $1,224.

GOLD – XAU/USD – Trade Idea

Let’s keep an eye on $1,229. The idea is to take buying positions above it for 30/40 pips. While sell entries will be preferred below $1,229 to target $1,224.

Good luck and stay tuned for more updates.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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