gold futures

Buying The Dip In August Gold Futures

Posted Wednesday, June 26, 2019 by
Shain Vernier • 1 min read

August gold futures have taken a bearish turn, falling beneath the 1425.00 level. Risk sentiment has been unexpectedly boosted, fueled by fresh optimism over the coming G20 Summit. Currently (11:30 AM EST), rumors are hitting newswires that the U.S. and China may be closing in on a trade war resolution.

A few hours ago, Treasury Secretary Mnuchin commented that there “is a path” to the U.S. completing a trade deal with China. While Mnuchin’s statements are by no means a slam-dunk, they have brought moderate optimism to U.S. equities and the USD. Conversely, gold futures are pulling back.

August Gold Futures Sell Off

The good news is that we may have a buying opportunity coming into play for August gold futures. Trade war hopes have challenged the prevailing uptrend, washing out a large number of long position stop losses beneath Tuesday’s low (1415.1).

August Gold Futures (GC), Daily Chart
August Gold Futures (GC), Daily Chart

Here are the levels to watch going into the second half of today’s trade:

Resistance(1): Swing High, 1442.9
Support(1): 38% Current Wave, 1397.3

Bottom Line: In the event “risk-on” becomes the theme later this week, going long in August gold futures will set up as a viable trade. A pullback to the 38% Current Wave Retracement (1397.3) will provide a solid entry point.

Until elected, I will have buy orders in the queue from 1398.1. With an initial stop loss at 1394.4, this trend-following trade produces 50 ticks profit on a return to the 1405.0 level.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Yesterday the CPI numbers from European countries showed a slowdown, so today's headline Eurozone inflation numbers should be soft as well
22 hours ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments