Gold Bounces off $1,313 Support – Here’s a Trade Plan

The precious metal gold steadied on Wednesday and continues to trade in the bullish channel. The bullish channel was providing support around $1,313 today as a firm dollar offset bullion’s gains arising from worries over a possible recession in the United States.

Uncertainties about Brexit are also boosting bullion’s safe-haven demand. Besides that, China may expand US pork imports to a record high level as part of a pledge to support buying from the US side. The idea is to resolve the trade war issue.

The positive gesture from China is well appreciated, it’s one step towards a trade deal with the US. It also reduced the safe-haven appeal.

On the technical side, gold has tested the $1,313 support area and managed to close a bullish candle above it.

Certainly, the bulls are testing the level and are still trading gold with a bullish sentiment. On the upper side, gold may face resistance around $1,320 and $1,324.

Gold – Trade Idea

We just opened a buy signal in gold with an entry price at $1,318 with a stop below $1,315 and take profit at $1,321.

Good luck!