Gold Price Reaches 10-month Highs – Wait for a Swing Trade Plan
Arslan Butt • 1 min read
On Wednesday, the yellow metal gold continues to trade at 10-month highs around $1,344. Most of the bullish trend is supported by global slowdown concerns and a weaker dollar.
Moreover, the US President Trump announced he needs North Korea to end its nuclear program, even as he sends his special representative to conclude preparations for a second summit with North Korean leader Kim Jong Un next week. The summit is triggering bullish sentiment for safe haven assets such as gold.
The US Federal Reserve is also in highlights for the release of FOMC meeting minutes which are more likely to be dovish, but let’s see.
Key Trading Level: 1325.23
Gold XAU/USD – Swing Trade Plan
Technically, gold is heading north towards the triple top resistance level of $1,354. Since it’s already in the overbought zone, a closing of any candle below this level (1354) can trigger a sell-off today or later this week. The stop loss needs to be around $1,364 with a take profit of around $1,326.