Gold Steady Below Psychological Trading Area $1,300 – Risk-on Sentiment
Arslan Butt • 1 min read
Gold prices continue to trade bearish under the psychological trading level of $1,300. It’s been trading flat on Monday as investors turned towards risky investments after a private survey showed China’s manufacturing activity rebounded unexpectedly.
Firms indicated quicker rises in manufacturing and overall new work lightly, while employment increased for the first time in over five years. The PMI figure surged to 50.8 vs. 49.9 previously. Caixin Manufacturing PMI has improved investor sentiment regarding global economic growth. In response to this, prices of the safe-haven gold are flat.
The precious metal gold is facing a hard time to push above $1,300 resistance area. During the previous week, the yellow metal fell from $1,310 to $1,286 just in two days. The bearish rally is in control now.
GOLD is trading in the oversold area, and the Stochastic has started coming out of 20. The 200 periods moving average will also be providing it a strong resistance around $1,304 area.
Recently, gold closed bearish reversal candles below $1,300 which suggest a robust bearish intention of investors.
Gold has a strong probability of staying bearish below $1,300 with immediate support around $1,290 and $1,281. While the bullish breakout of $1,300 can lead gold prices towards $1,312.