Gold Trades Bearish Over Risk-on Sentiment – Quick Technical Outlook
Arslan Butt • 1 min read
Recalling FX Leaders’ previous forecast, Trading Gold on the US Nonfarm Payroll, the market traded exactly in line with our forecast, helping us secure nice profits in gold not only on Friday but also today on Monday.
The risk-off sentiment has turned to risk-on as the US markets had a mixed finish to the week. The Dow and S&P managed to close a positive day whilst the Nasdaq fell slightly after a lower sales forecast from Amazon.
Moreover, the risk-aversion faded amid some signs of progress in the US-China trade talks and as the dollar firmed.
GOLD is still facing strong resistance near $1,325 and $1,315. The closing of weekly candle below this level is adding further selling pressure in gold. Next support can be seen around $1,307 and $1,304.
Gold – XAU/USD – Trading Levels
Key Trading Level: 1322.18
Gold// XAUUSD – Trading Idea
Today, the idea is to stay bearish below $1,315 with a stop loss above $1,318 and take profit around $1,307 today.