Gold’s Steady as Risk-Off Sentiment Begins to Fade – Trade Plan - Forex News by FX Leaders

Gold’s Steady as Risk-Off Sentiment Begins to Fade – Trade Plan

Posted Monday, May 13, 2019 by
Arslan Butt • 1 min read

On Monday gold prices are stable in a narrow trading range of 1,290 – 1,280, as the trade discussions between the United States and China hit a wall. The US lifted tariffs from 10% to 25% and China in return vowed to retaliate. This is decreasing expectations of a trade deal in the near future and raising demand for safe-haven assets.

Last week, gold price increased in India due to increased retail purchase for essential festivals and wedding season. Let me remind you that India is one of the biggest consumers of gold and news about physical demand triggers a bullish trend in gold prices.

Secondly, the trade war has weighed on the Chinese Yuan, making it weaker among peers, and ultimately making gold expensive for the world’s largest gold consumer.

Gold Daily Chart

Recalling our weekly forecast on gold, it’s likely to trade in the same range of 1,290 – 1,280. But the breakout will determine further trends. If gold violates 1,290 on the upper side and manages to close a daily candle outside this resistance, we may see a bullish rally until 1,309. On the flip side, the bearish breakout of 1,280 could extend selling until 1,271 and 1,267.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments