Sideways Trading in Gold Over G20 Summit – Breakout Eyed
Traders, the precious metal gold price are stuck in a sideways range of $1,438 – $1,400 as investors await G20 Summit to determine further trends in the market. Traders continue to stay on sidelines ahead of G20 summit where China and the United States Presidents are due to meet.
The US and China have agreed to a provisional truce in their trade dispute until Trump and Xi Jinping meet on Saturday, consequently, fading the safe-haven appeal. Despite dropping from fresh six-year highs of $1,439, the yellow metal still managed to balance itself well above the psychological support level of $1,400.
However, the market is still uncertain whether the discussions will produce developments to bring the trade deal and end trade dispute among two nations.
On Friday, gold is likely to face immediate support at $1,398, the 38.2% Fibonacci retracement level. A bearish breakout of this level could trigger further selling until $1,389, the 50% Fibo level.
20 and 50 periods EMA are likely to support gold around $1,362 level, leaving huge place for gold to retrace back. Stochastic and RSI are holding in the overbought zone, suggesting the further potential for a bearish retracement.
Support Resistance
1406.33 1433.8
1395.4 1450.34
1367.93 1477.81
Key Trading Level: 1422.87
The idea is to stay bearish under $1,420 and bullish above $1,400 level today as the market may trade choppy ahead of G20 outcome.
Good luck, and stay tuned!
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