Gold Violates Psychological Level of $1300 – US Government Reopens
Gold soared over 1% to cross above the psychological trading level of $1,300. Top two thing's to know today!
Arslan Butt•Monday, January 28, 2019•1 min read
On Friday, the precious metal gold soared over 1% to cross above the psychological trading level of $1,300. The bullish trend in gold was triggered after a sell-off in the Greenback for two major reasons:
- The dollar slipped ahead of a US Federal Reserve meeting next week where the central bank is widely expected to leave interest rates unchanged
- Investors boosted safe-haven appeal over the continued partial shutdown of the US Government.
US Government Reopens
The US government has re-opened momentarily after the most prolonged shutdown in American history. It’s been closed for more than 35 days and has finally opened, but temporarily. Which is why we have a slightly bearish impact on gold today. We will explain the impact of US Government reopen in more detail in our next update.
GOLD – XAU/USD – Technical Outlook
- Taking a look at the 4-hour timeframe, the yellow metal gold is trading in an overbought zone.
- The RSI and Stochastics are steady above 90 which is good enough to trigger a correction.
- Gold has formed a bearish candlestick pattern called a shooting star. Shooting star is followed by a sharp bullish trend and it typically triggers a sell-off in the market.
- Gold has an immediate resistance near $1,303 along with support near $1,297.
Gold – XAU/USD – Trade Plan
Consider selling below $1,303 with a stop loss above $1,306 and take profit near $1,297 and $1,293.
Good luck!
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
ABOUT THE AUTHOR
See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
Comments
Subscribe
Login
Please login to comment
0 Comments
Oldest
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals