Trump Triggers Risk-off Sentiment – Gold’s Trade Plan

Posted Wednesday, February 6, 2019 by
Arslan Butt • 1 min read

During the Asian session, gold prices traded mostly sideways due to lack of economic events. However, the precious metal is supported after the US President Donald Trump pledged to construct a border wall in his State of the Union speech. With that, there’s still a risk of another government shutdown as US President Trump is still up for constructing a border wall.

Recalling our earlier update, the yellow metal is trading in the same trading range of $1,310 – $1,316. Traders are staying bullish after gold prices touched nearly one-week lows this week.

On the other hand, the US treasury yields are still placing pressure on gold. The 10-year Treasury bill yield climbed 3.4 basis points to 2.724%, while the 30-year bond yield was up 2.8 basis points to 3.058%.

Support Resistance
1311.83 1318.02
1308.22 1320.6
1302.03 1326.79
Key Trading Level: 1314.41

The technical side is still the same. As we can see on the 4-hour chart, gold keeps on trading sideways with support near $1,310 and resistance at $1,326. Consider staying bullish above $1,310 with a stop below $1,307 and take profit at $1,317 today.

All the best!

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