Daily Briefing, May 27 – Market Wrap & How to Trade Gold Today

Looking ahead to today's trading and the economic data, we literary have no fundamental on the economic calendar due to the bank holidays...

Arslan Butt•Monday, May 27, 2019•2 min read

Market Wrap

The global financial markets had a comparatively soft day on Friday as several geopolitical risk issues emerged ahead of the weekend.
The United Kingdom’s PM Theresa May’s resignation comes along with the European elections, and both of these were the main concerns for investors. Until now, both have come through mainly as anticipated with slight volatility in the markets.
Equity markets encountered a healthier day on Friday although profits were limited. The US stock market indices closed around 0.5% up.
The US Treasury yields remain under pressure with the barometer 10 years now trading at around 2.32%.
Crude oil gained some support after encountering its hardest week this year, with WTI trading around $58.80 and Brent just above $69 as we enter the new trading week.

What’s Next?

Looking ahead to today’s trading and economic data, we literally have no fundamentals on the economic calendar due to bank holidays in both the United Kingdom and the United States. Traders can expect quiet trading conditions. Let’s check out a gold trade plan.

GOLD Supported Over 50 & 200 EMA – Safe Haven Looms

Gold’s short-term outlook is improving as the Greenback is running out of fundamentals to stay bullish, and the US stocks are fostering suspicions about their future performance. However, the precious metal opened higher on Monday as worries of a protracted US-China trade war burned risk sentiment, while weak economic figures from the United States strengthened chances of a Federal Reserve rate cut.

Over the weekend, Trump reiterated and criticized that the Federal Reserve’s strategies had slowed down the US economic growth from reaching its full potential.

Gold is consolidating near 1,283 area with an upper range of 1,286 and lower range of 1,282 today. The Moving Averages have acted as resistance, so there’s a green light for a bearish trend.

Gold – XAU/USD – Technical Levels

Support Resistance
1273.87 1291.66
1262.83 1298.41
1245.04 1316.2
Key Trading Level: 1280.62

Gold – XAU/USD – Trade Plan
We may find the closest support at 1279.32 – 1276.96 as a potential bearish target. The following pullback from this level could lead to another bullish price movement towards 1286.15 – 1295.25.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.