Gold Safe Haven Fades as Equities, US Bonds Yields Reverses

Gold is trading near $1,317 after testing a new resistance area of $ 1,324. The relative strength index indicator is in the buying zone.


Howdy, traders.

It’s been a slow week so far, and we are trying our best to share good signals only. It’s better to stay out of the market, rather than forcing a trade. I always recommend never trade for the sake of trading, but only when you spot a potential setup.

Despite thin volatility in the market, gold is showing big moves on the verge of FOMC dovish statement, and a drop in the US bond yields. After hitting a one-month high in the previous session, gold is taking a bearish turn now. A slight recovery in stock indices and US Treasury yields is diminishing some of the precious metal’s safe-haven appeal.

GOLD – Technical Outlook

Gold is trading near $1,317 after testing a new resistance area of $ 1,324. The relative strength index indicator is in the buying zone. On the 4-hour chart, gold is consolidating in a bullish channel which is providing a solid resistance around $1,325 and support at $1,312.

For now, the trade idea is to stay bearish below $1,325 and bullish above $1,311 with a 40 pips stop loss on both of the sides.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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