Gold Stuck in a Range – Risk-on Sentiment in Play

Posted Tuesday, November 27, 2018 by
Arslan Butt • 1 min read

A stable dollar, rising stock markets and lower return on bonds are collectively impacting the prices of safe-haven assets. Yesterday, the global stock markets rose on the back of Thanksgiving sales, making gold a less attractive investment. Consequently, the investors moved their funds from indices to the precious metals.

GOLD – XAU/USD – Technical Outlook
Let me highlight the technical side of the instrument. The leading indicators, both the RSI (above 50) and Stochastics (below 50), are recommending a bearish trend in the metal. In addition to this, the lagging indicator, 50 periods EMA, is also supporting the bearish bias of investors. Perhaps, very soon it’s going to complete an asymmetric triangle pattern in the 1-hour timeframe which represents the neutral sentiment of investors regarding gold.

Gold has an immediate support at $1,220 and the violation of this level can lead gold prices towards $1,217 and $1,214. It will be nice to stay bearish only below $1,220 with a stop loss at $1,224 and take profit at $1,216.

Good luck!

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