Two Winners in Gold – Who’s Ready for the Next? - Forex News by FX Leaders

Two Winners in Gold – Who’s Ready for the Next?

Posted Wednesday, May 29, 2019 by
Arslan Butt • 1 min read

On Wednesday, the precious metal gold surged from the previous session’s low, pulled up by uncertainty over US-China trade tensions. Meanwhile, trade tensions and a rise in US consumer confidence supported the dollar even as weakness in equity markets limited losses for the metal.

Gold’s path was mixed after failure to break $1,286 level-technicals. US President Donald Trump remarked at a news conference with Japanese Prime Minister Shinzo Abe that the US is “not ready to make a deal with China,” sinking hopes of a trade agreement between the world’s biggest economies. Whereas, China is ready to retaliate.

GOLD is surging over risk off sentiments, and the technical side is suggesting the next target around 1,287/88. Zooming out on the 3-hour chart, gold is crossing above 200 and 50 periods moving averages. While the Stochastic and RSI are heading north, crossing over 50 and suggesting a bullish bias.

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

Gold – XAU/USD – Trade Idea

So far, we have closed two winning trades in gold, and now looking for an opportunity to enter the third one. Gold has an excellent resistance around 1,287/88 and a closing below this level may give us a sell opportunity.

Good luck!

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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.
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