Gold on Fire – Economic Slowdown Triggers Risk-off Sentiment
The precious metal is becoming very expensive in the international market over changing fundamentals. Gold prices rose during the Asian and European session after holding above the psychological resistance level of $1,300.
Just like crude oil, GOLD is also a commodity which is being impacted by the ongoing trade war between the United States and China. The market’s confidence faded that the two parties would soon end their prolonged tariff fight. That’s hurting the world’s second-biggest economy – the Chinese economy, and causing a slowdown in global economies.
A slowdown in economies causes a drop in business and if the business sector isn’t expected to do well, then why should I invest funds in the stock market? I would rather go for gold. That’s exactly what’s happening in the market right now.
Gold trades at $1,308 per ounce, adding +0.29% for the day so far. It can face an immediate resistance near $1,312 while support remains near $1,306.
GOLD – XAU/USD – Trading Plan
We already closed one winning trade on gold today and we will be waiting for the market to test $1,312 before shorting the metal.
Stay tuned to FX Leaders for more updates and forex trading signals. Good luck.
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