Gold’s Quick Technical Outlook – Trade War Woes Lift Haven Appeal
Arslan Butt • 1 min read
GOLD prices were steady near one-month highs on Tuesday as an escalation in the Sino-US trade dispute sent investors looking for safe-haven assets. Gold surged right after Beijing’s announcement of a retaliatory tariff-hike to counter the US 25% trade tariffs.
In response, US stock exchange markets took a sharp bearish turn with the Nasdaq down 3.41%, the S&P and Dow were hit as well, closing 2.41% and 2.38% down respectively. The negative correlation of between gold and stock markets triggered a bullish trend in gold. Let’s take a look at the technical side of gold.
Gold – Technical Analysis
The yellow metal has violated the bearish channel at 1,285 and horizontal resistance area of 1,298.
The RSI and Stochastics are overbought and are very likely to get us a bearish retracement.
On the lower side, gold can target 1,294 and 1,290. Whereas, buying can be seen either above 1,290 or on the violation of 1,302 resistance.
Key Trading Level: 1284.9
Gold Trade Plan
We are staying bearish below 1,300 level to target 1,296 along with resistance around 1,303 today.