Gold Support Over Safe Haven Appeal – Asian Stocks Tumbled
Arslan Butt • 1 min read
What’s up, traders.
The Japanese markets are still closed today in the wake of four day new year holidays. But the trading volume and volatility remain high. During the Asian session, gold prices edged higher aimed a strong sell-off in the Asian equities and worries about a sharp global economic slowdown.
The stock markets exhibited a dramatic dip during the Asian session after Apple Inc. cut its revenue forecast for the latest quarter.
The meeting between the POTUS (President of the United States) Trump and US congressional leaders ended with no signs of negotiations to halt the partial government shutdown. It’s been 12 days now and the stock markets are facing extreme sell-off over the uncertainty.
Looking at the technical side of gold, the yellow metal has violated the significant support area of $1,288. Interestingly, the recent candle closed as a bullish engulfing, signaling strong bullish bias of traders. So, we have also entered a bullish rally to capture some quick trades.
XAU/USD – GOLD – Trading Signal
We have opened a forex trading signal to buy gold above $1,289 with a stop below $1,286 and take profit at $1,291.50.