Gold Trading Signal Hits Take Profit – Sideways Range Intact
Arslan Butt • 1 min read
The market is finally showing some volatility ahead of the one most awaited economic events, the US Nonfarm Payroll which is due on Friday. The risk appetite of investors is increasing as the trade war sentiment is likely to shift over the US-China trade deal.
The dollar index, which measures the strength of Greenback against major currencies, is holding near $97 – its highest since February 19. A stronger dollar is weighing on the gold.
On the other hand, the Organization for Economic Co-Operation and Development lowered forecasts for the global economy in 2019 and 2020 over concerns on global growth. The stock market is tumbling on the news and investors once again are looking into risk-free investments like gold.
The technical side of the market is exhibiting no change in trends. Gold continues to trade sideways. In fact, gold is trading in line with our previous forecast and heading towards the $1,275 target. 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
Our sell position in gold is already closed at take profit at $1,281 and the market reversed right after that. For now, I will be looking to take a sell position below $1,287 and buy position above $1,278.