An Update on Gold’s Sell Signal – Trade War in Focus
Arslan Butt • 1 min read
The precious metal GOLD is keeping the bearish tone $1,319.95, losing -0.17% for the day. It was supported over a sentiment that a prolonged Sino-US trade war could worsen global economic slowdown as a deal between China and the US won’t be coming anytime soon.
President Trump is now advising that a meeting with President Xi of China is highly unlikely before March 1. Therefore, investors may keep their funds in safe-haven assets. A stronger dollar is pushing bullion on the track for its first weekly losses.
The technical outlook is signaling a bearish bias for gold. For instance, 20 periods EMA is giving a hard time to gold near $1,310. The RSI and Stochastics are exhibiting bearish crossover on the 4- hour chart.
The double bottom level which was supporting gold at $1,311 was violated on Wednesday. Now the same double bottom support is likely to work as a resistance $1,311.
Key Trading Level: 1308.42
Gold – Trading Signal
We are sitting on the sell below $1,310 with a stop loss above $1,313 and take profit around $1,307.