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