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!
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