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Economic Events Brief, Mar 18 – How to Trade Gold on Monday?

Posted Monday, March 18, 2019 by
Arslan Butt • 2 min read

Welcome back to another exciting week.

Except for Monday, the current week is fully loaded with top-tier economic events. Monetary policy decisions from the Federal Reserve and Bank of England top the list.

During the previous week, the US dollar declined against its peers to post a weekly loss on weaker than expected data, adding to concerns of an economic slowdown. The bullion market is trading sideways as the prices trade around the psychological level of $1,300 an ounce. In this update, we are going to have a look at gold to determine its upcoming trend.

Key Economic Events

EUR – Trade Balance

The Eurostat will be releasing this data at 10:00 (GMT) with a positive forecast of 17.2B vs 15.6B. Fellows, it shows that the Eurozone exported more than their imports which is a good sign for Eurozone.

EUR – German Buba Monthly Report

At 11:00 (GMT), the Deutsche Bundesbank will be releasing the monthly report on the German economy. Typically, it contains relevant articles, speeches, statistical tables, and provides a detailed analysis of current and future economic conditions from the bank’s viewpoint.

The optimistic view of Deutsche Bundesbank on German economy will extend support to the single currency Euro. Else, we may see a selling opportunity today.

GOLD – XAU/USD – Weekly Outlook

During this week, gold traders focus on the US Federal Reverse policy meeting. The event is due on Wednesday, March 20. There’s a strong probability that the Fed policymakers will lower their interest rate forecasts, or “dot plots”, to present slight or no further tightening this year.

Besides that, the outlook for the world economy and global trade remain uncertain, which is keeping the gold prices supported.

  • Looking at the technical side of the market, almost all the technical indicators are signaling a neutral bias of traders.
  • Gold bounced off above $1,293, the support extended by 100 periods moving average.
  • There’s a bearish crossover on the 14 days RSI (relative strength index).
  • There’s a bullish trendline supporting the yellow metal above $1,296. While the resistance $1,307.

XAU/USD – Trading Levels

Support      Resistance
1297.52       1306.82
1292.69       1311.29
1283.39       1320.59
Key Trading Level: 1301.99

Gold– XAU/USD – Trade Idea

The idea is to stay bearish below $1,301 with a stop loss above $1,304 and take profit of around $1,296 and $1,292.

Good luck!

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