Gold Support Over Safe Haven Appeal – Asian Stocks Tumbled - Forex News by FX Leaders

Gold Support Over Safe Haven Appeal – Asian Stocks Tumbled

Posted Thursday, January 3, 2019 by
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.

Good luck!

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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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