Quick Update on Gold’s Sell Signal, US-China Trade War Plays - Forex News by FX Leaders

Quick Update on Gold’s Sell Signal, US-China Trade War Plays

Posted Monday, February 11, 2019 by
Arslan Butt • 1 min read

Earlier today, we opened a forex trading signal in gold to sell it below $1,311 with a stop loss above $1,314 and take profit around $1,307.875. It looks like the precious metal may face a sell-off on the back of a stronger dollar.

US-China Trade War
Investors are moving their funds into the dollar as concerns grew that U.S.-China talks this week would not fix a crack over trade between the world’s largest economies.

Both nations are trying to come up with a deal ahead of the March 1 deadline. After this, the US tariffs on $200 billion worth of Chinese imports are scheduled to expand to 25% from 10%.

As you know, China has more to lose if they fail to keep tariffs on hold. Being the second-biggest gold consumer, the Chinese demand for gold can dip over a slowdown in economic growth. The sentiments are likely to keep gold under selling pressure.

From the technical analysis viewpoint, gold is facing a solid resistance at $1,311 and it’s highly likely to stay bearish below this level. The initial target can be $1,307.50 and 1,302.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments