Gold Signal Heading towards Take Profit, Risk on Sentiment Plays!
Arslan Butt • 1 min read
On Monday, the precious metal gold inched lower, having posted another significant daily decline the US session. One of the major reasons is the strong dollar. The impact of a weak dollar was offset by gains on Wall Street.
During the previous week, the yellow metal had broken below the critical psychological level of $1,300 to hit a one-week low due to sharp gains in the dollar. On Monday, the market continues to trade in the same manner.
Gold – Technical Analysis
- On the hourly timeframe, gold is holding above support cum resistance level of 1,284.
- There?s a small bearish channel which extends support at 1,284 and resistance at 1,291.
- On the lower side, a bearish breakout can lead gold prices towards 1,281 and 1,277
- The RSI and Stochastics continue to play in the oversold zone.
GOLD Trading Signal
We are holding a sell position below 1,288 with a stop loss of 1291 and take profit of 1315.