Gold Holds Below 100 MA – a Potential Sell Opportunity

The yellow metal gold reached nearly a two-week high on Wednesday around $1,311. The buying trend was triggered in response to tepid US economic data which reinforced views that the Federal Reserve would be patient on the monetary policy.

In addition, the safe haven demand triggers over uncertainty caused by Brexit deal ahead of a key vote. Since the Asian session, traders have started taking profits in gold, causing a reversal in the market.

GOLD has dropped to $1,305 and it’s very likely to find support around $1,300 and $1,293. On the upper side, gold may find resistance around $1,308.

Support    Resistance
1304.77    1312.42
1300.44    1315.74
1292.79     1323.39
Key Trading Level: 1308.09

Gold – XAU/USD – Trade Idea

The idea is to stay bearish below $1,308 with a stop loss above $1,311 and take profit of around $1,300 and $1,297.

Good luck!