Gold Spikes, but Risk-on Sentiment Limits Bullish Momentum – Trade Plan
Arslan Butt • 1 min read
The yellow metal trades bullish at $1,274.60, adding +0.38% amid worries over global economic growth and a partial US government shutdown. But lately, the investor sentiment has shifted from Risk-off to Risk-on which has driven massive buyers in the equities.
Well, this happened after Standard & Poor’s released the Composite-20 HPI y/y which rose to 5%, beating the forecast of 4.8%. The rebound in investor risk-appetite in the previous session caused a slowdown in gold’s bullish momentum.
At the moment, the precious metal gold price remains bullish above the $1,265 support area. The pin bar candle above the support zone is signaling the bullish bias of traders.
On the other hand, gold remains under pressure beneath the resistance layer around $1,278.
GOLD – XAU/USD – Trade Plan
Consider buy positions above $1,266 support zone with a stop loss below $1,263 and take profit around $1,278 today.