Choppy Trading In Gold - US Midterm Elections Results Are Out! - Forex News by FX Leaders

Choppy Trading In Gold – US Midterm Elections Results Are Out!

Posted Wednesday, November 7, 2018 by
Arslan Butt • 1 min read

Gold continues to trade sideways in a narrow trading range of $1,224 – 1,236. The bullish price action is likely linked with the plunge in the US dollar. The Greenback is in selling pressure across the board in Asia as Democrats seem to be gaining ground in Florida.

As per the recent news, the Democrats win back House, Republicans hold Senate.

GOLD – XAU/USD – Bullish Flag Fakeout

On the 2 – hour chart, gold has completed 38.2% retracement at $1,226 and we may see a bounce in gold prices. As discussed in our previous analysis report, gold has formed a bullish flag pattern which was signaling chances of a bullish breakout and it actually broke out of the range.

Fortunately, we were able to come out the market at $1,232 as gold took a bearish reversal later. So, the bullish flag breakout turned into a fakeout.

Support Resistance
1221.67 1234.1
1216.41 1241.26
1203.98 1253.69
Key Trading Level: 1228.84

Since the Midterm elections are mixed, we may see choppy trading in gold. So, the idea is to stay bullish above $1,228 and bearish below $1,236.

Good luck!

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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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