Dramatic Surge in Gold Prices – Sino-US Trade War Plays

On Monday, the precious metal GOLD continues to trade higher over the trade war and the potential uncertainty that may come in future. A more significant movement in gold seems to be coming when the market “internalizes” a “no trade deal” scenario, leading to heightening tensions between the US and China affecting global growth and inflation forecasts. Let’s look at the technical outlook.

XAU/USD – Technical Analysis

Well, quite a few indicators are signaling bullish bias of traders. Let us discuss them one by one.

On the 4-hour chart, gold has violated a significant sideways range of 1,299 – 1,266. With this, the next range is likely to be 1,322 – 1,299.

The 50 and 200 periods’ exponential moving averages are left far behind at 1,266 and 1,285. We can imply two things.

  • First, the market is strongly bullish as it’s holding over EMA’s.
  • Second, the market is overbought, and sooner or later, we may have a bearish reversal in gold.

In both cases, the support stays at around 1,309 and 1,299. While resistance is likely to be at 1,322, the violation of 1,344 can lead to gold prices towards 1,341.

Gold – Trade Plan

The idea is to stay bullish over 1,312 with a stop loss below 1,309 and take profit at 1,317 and 1,322.

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 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.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440

XM

Best Forex Brokers