Deep Dive in Gold Prices – Haven Demand Fades on Easing Global Tensions
Arslan Butt • 1 min read
What’s up, fellas.
Gold has suffered a significant hit over the last few weeks over easing trade war tensions. However, it’s been trading as per our trade plan “Gold Violates Bullish Channel – Trade War Tension Eases”.
Slightly better than expected economic events from the US economy have also increased the investors’ sentiment towards the US dollar. A stronger dollar is making gold bearish. Sentiment has been a big driver of markets over the last six to twelve months.
The trade situation between the US and China is looking more positive as Trump has pushed the trade deal deadline and there’s a chance that both economies will sign the deal on March 27 summit. Besides, India-Pakistan tensions are also easing with time.
GOLD – Technical Outlook
The technical outlook of gold remains mostly unchanged. In fact, gold is trading in line with our previous forecast and heading towards the $1,275 target.
Let us recall that the yellow metal violated the bullish channel to the downside. The bullish channel was supporting the metal around $1,320. For now, the sellers can extend bearish momentum until $1,275 this week.
Gold – Trading Signal
We are holding our sell position of $1,286 with a stop loss at $1,290 and take profit of around $1,276. It’s in profit right now and you can move your stop loss at breakeven if you wish so.