Bullish Breakout in Gold – A Quick Update on Trading Signal!
Arslan Butt • 1 min read
During the Asian session, GOLD prices advanced as the dollar weakened after testing 16-months highs in the previous session on a better than expected ADP report. As per the advance NFP, the private payrolls expanded by 227K for the month, higher than the 218K seen in September and economists’ forecasts of 189K which is quite impressive. Can we expect the same from Non-farm payroll on Friday? Well, let’s see.
Looking at the 2-hour chart, gold has come out of the bearish channel which was extending a hurdle near $1,216. Looks like the investors are taking profit in dollar ahead of non-farm payroll data, which is highly expected to be positive.
At the moment, gold is facing a resistance near $1,224 along with a support near $1,216. The 50 – periods EMA holds at $1,224, let’s see if gold manages to cross above it.
In order to see a continuation of a bullish trend, gold should violate the major support level of $1,224 today. The next resistance can be found near $1,231.
Key Trading Level: 1215.22
GOLD – XAU/USD – Trade Idea
Today, the idea is to stay bullish above $1,216 to target $1,222 and $1,225, while selling can be seen below $1,231 today.