Gold peaking out of an Intraday Range – Is it time to trade breakout?
Arslan Butt • 1 min read
The strengthened dollar, the slump in the stock markets and lower return on bonds are collectively impacting the prices of safe-haven asset GOLD . Yesterday, the global stock markets S&P500 came under a sharp sell-off in the US session with losses driven by a distinctive drop in the US equity markets.
Consequently, the investors panicked and dramatically picked up the demand for haven asset, keeping the gold prices on hold despite the strengthening dollar. Today, the investor’s focus remains on the US advance GDP to predict further movements in gold and the dollar.
Let me highlight the technical side of the instrument. The leading indicators, both the RSI (above 50) and Stochastics (at 74), are recommending bullishness in the metal. Meanwhile, the lagging indicator, 50 periods EMA is also supporting the bullish bias of investors.
Well on that note, I have decided to hold my buy position with a take profit at $1,236 and a stop loss at $1,229. Now all eyes are on the US advance GDP figure which is due later today at 12:30 GMT. Hopefully, It will manage to surprise the market.