Gold Slips Over Mixed Sentiments – 38.2% Fibo Levels Eyed
Arslan Butt • 1 min read
What’s up, traders.
The precious metal GOLD prices are solidly lower in early Asian trading on Tuesday. The precious metal slipped dramatically from 1,328 to 1,321 over mixed sentiments. Looks like half the market is pricing in risk-off sentiment, keeping stock under pressure while the other half is weighing on the precious metals. The concerns about Sino-US trade unsettled the market optimism that followed a US-Mexico deal.
The sell-off was triggered after the US President Donald Trump announced his intentions and readiness to impose another round of tariffs on Chinese imports if both nations fail to make progress in trade talks with China’s President at a G20 summit later this month.
Gold’s Technical Analysis
On the technical front, the precious metal is heading lower towards 38.2% Fibo level of around 1,317. We made a bearish call below 1,327 to secure profits around 1,323 earlier today. For now, gold has a high probability of testing 1,317 support.
We can also see a bearish engulfing pattern on the daily chart, which is suggesting strong bearish intentions of sellers. The relative strength index is still in the overbought zone, signaling potential sell-off ahead.
Key Trading Level: 1339.77
Gold – Trade Idea
The idea is to stay bearish below 1,325 with a stop loss below 1,330 and take profit of around 1,320.