On Tuesday, GOLD prices soared, flying to near a three-month top during the Asian session. Well, investors are still pricing in the global economic slowdown, which is mostly driven by trade conflicts between China and the United States.
Lately, another remark from the US Secretary of State Mike Pompeo triggered further haven appeal. He said, the United States is exploring to “level the playing field” with China following decades of unethical trade practices. The continued trade war between the world’s largest economies has turned over the financial markets. Since the very first day of the trade war, the stock markets haven’t able to stabilize as investors lost their trust in risky assets.
The technical outlook still stays bullish as is evident from the “Three White Soldiers” in the highlights today. On the daily timeframe, you can see three long candles which are showing a robust bullish intention of traders.
The bullish breakout of 1,323 is likely to be violated, and this may lead to gold prices towards 1,342. On the lower side, gold is still supported at 1,322 today.
Gold – Trading Signal
The idea is to stay bearish under 1,322 and bullish above this level with a 50 pips take profit on both sides.