Gold – Three Things to Know About Gold Today - Forex News by FX Leaders

Gold – Three Things to Know About Gold Today

Posted Wednesday, January 23, 2019 by
Arslan Butt • 1 min read

It’s been a few days now, we haven’t heard any controversial statements, either from the United States or from China. In fact, we don’t even have any high impact economic event from the US which can impact gold valuation. As a result, the precious metal is trading on a technical basis today.

Three Things To Know About Gold Today

1) Looking at the 4-hour chart, we can see a bullish momentum in gold but it’s taking a pause below $1,286. If you recall, it’s the same level which provided strong support to gold for almost a week. However, gold violated this level on Friday and now the same level is likely to work as a solid hurdle for gold.

2) Gold has completed 50% retracement at $1,286 and it’s also closing candles below the same level. One of the candles is also bearish engulfing, which is supporting a bearish bias of traders for gold.

3) Thirdly, the RSI and Stochastics are in an overbought zone which means investors will be waiting for a bearish retracement before placing bullish bets in gold.

Gold – 4 Hour Chart

Support Resistance
1279.94 1288.01
1274.69 1290.83
1266.62 1298.9
Key Trading Level: 1282.76

Gold // XAUUSD – Trading Plan

Consider staying bearish below $1,286 with a stop above $1,287 and take profit around $1,280. While bullish entry will be preferred above $1,287 today.

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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