Gold’s Breakout Becomes Fakeout – Investors Eye Trade War!
Arslan Butt • 1 min read
Recalling our previous update, Gold Signal in +40 Pips Profit – Let’s Manage it, it was a good idea to close our trade manually in profit as the market reversed immediately afterward and fell below $1,224. The breakout pattern turned into a fakeout.
During the Asian session today, gold prices inched up while the dollar was flat as traders eyed US-China tensions. Investors will likely shift focus to the G20 leaders’ summit later this month in Argentina where US President Donald Trump is supposed to meet with his Chinese counterpart Xi Jinping.
Gold is testing $1,224 probably for the sixth time now. Yesterday, the precious metal soared above $1,224 to place a high of $1,228, but it proved to be a fakeout. The bullish breakout of this level can open further room for buying until $1,234. Whereas, the support prevails at $1,221.
Key Trading Level: 1222.51
Gold – XAU/USD – Trading Idea
It will be nice to stay bullish above $1,224 with a stop below $1,221 and a take profit of $1,227 and $1,229.