Gold Hits Take Profit – Who’s Up for Next Trade?
Arslan Butt • 1 min read
Gold prices traded precisely in line with our forecast to help us secure over 30 green pips early during the Asian session. The yellow metal edged lower, slipping from a one-month peak of around 1,302.
The optimism encircling trade discussions between Washington and Beijing eased investor worries, boosting global stocks and the dollar.
Well, another reason behind bearishness in gold is a stronger dollar. The Greenback held steady in the early Asian session after the US President Trump downplayed the recent trade war escalations by saying that he is ready to meet Chinese counterpart and that the deal hasn’t collapsed yet.
XAU/USD – GOLD – Technical Outlook
- As you can see, we opened a sell trade on Tuesday as gold was expected to drop until 1,296 level. The RSI and Stochastics were in the overbought zone, but the technical scenario has changed now.
- Gold has completed 61.8% retracement at 1,296 and the leading indicators are also out of the overbought zone.
- On the lower side, gold is facing support around 1,296 along with resistance around the 1,300 level. A bearish breakout could lead gold prices towards 1,290 today.
Key Trading Level: 1296.9
Gold – Trade Plan
Fellas, I have opened a buy position in gold above the 1,295 level as the market may retrace back upwards. As you can see, we are trying to do choppy trading by selling at top 1,300 and buying above 1,296 support. The setup is valid until it shows a breakout.