Gold Enters a New Trading Range Amid US-China Trade War

Posted Tuesday, February 19, 2019 by
Arslan Butt • 1 min read

During the early Asian session, the precious metal gold prices flew to near 10-month highs at $1,327 on a weaker dollar and the ongoing developments in the US-China trade deal.

The dollar index held at around $96.760, adding just +0.02 so far today as the market participants are considering the recent developments from the US-China negotiations as positive. Recalling, the US has less to lose from this trade war and the market is trading dollar with a bearish bias. Weaker dollar ultimately hikes the demand for dollar substitute gold.

GOLD – Key Technical Points

  • On the technical front, gold is in the overbought range with relative strength index staying above 80.
  • Gold has immediate resistance at $1,328 and supports around $1,320 and $1,317 today.
  • On the 4-hour chart, gold has formed a bearish inside bar, which is suggesting a potential bearish trend in gold.

Support Resistance
1322.71 1329.07
1318.87 1331.59
1312.51 1337.95
Key Trading Level: 1325.23

Gold – XAU/USD – Trade Plan

I will consider selling below $1,325 and buying above $1,317 today with a stop loss of 30 pips on both sides.

It’s mostly due to the light economic calendar today. 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
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments