Gold Prices Skyrocketed this Week – How to Trade Onward?
Arslan Butt • 1 min read
As we all know, there’s been a massive buying in gold which led its prices near eight-month highs $1,323. The buying was triggered by the sudden weakness in the dollar. The US central bank decided to keep the interest rates on hold but discarded vows of “further gradual increases” in interest rates.
As a result, the traders triggered massive buying in the yellow metal gold along with a sell-off in the dollar. Fortunately, we were able to close our position at take profit before the news release. However, there might be traders who are stuck in an anti-trend trade. If you are one of them, this update is for you.
Gold – XAU/USD – Quick Technical Outlook
Let’s us break down the technical analysis to make it easy for you.
- Gold has formed “Three White Soldiers ” which is a strong bullish signal. However, the market usually retrace back before the continuation of bullish momentum.
- The leading indicators such as RSI and Stochastics are holding above 80. So, it’s quite possible that buyers will trigger profit-taking below $1,323 today.
- Gold is facing a solid resistance near $1,323 trading level. In order to predict the next move, it’s very important to see gold closing today and tomorrow.
- The odds of selling will increase if a candle closes below $1,323 on the 4- hour timeframe.
- On the lower side, gold can gain support near $1,307 along with resistance at $1,324. Whereas, the bullish breakout at $1,324 can expose gold prices towards $1,360.