Bullish Breakout in Gold – a Quick Update on Trading Signal - Forex News by FX Leaders

Bullish Breakout in Gold – a Quick Update on Trading Signal

Posted Wednesday, January 2, 2019 by
Arslan Butt • 1 min read

The precious metal gold prices rose over demand for safer investments as investors felt concerned about the outlook for global economic growth. The dollar index has begun the week with a sharp bearish turn, falling around -0.27% to trade at 95.70. That’s been trading exactly in line with our monthly forecast Why Dollar Index Might Fall in Q1 2019?

Investors boosted the demand for the yellow metal after a dovish FOMC in December. There are expectations that a three-year rate-hiking cycle in the United States has come to a close. The market expects two rates in the year 2019 now.

For now, the precious metal is trading around $1,286.55, adding +5.25 points for the day. Despite the bank holiday, gold managed to break out of the long-standing resistance level of $1,283. Now that opens further room for buying in gold until $1,290.

Trade Plan – Gold
Fellas, consider taking bullish positions above $1,285 with a stop loss below $1,283 and a take profit of $1,288 and $1,290 today.

All the best!

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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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