G20 Triggers Sell-off in Gold – Just Like we Forecast
Arslan Butt • 1 min read
During the Asian market open, the safe-haven metal GOLD plunged from $1,400 level to $1,381 support level. Well, most of the bearish movement was highly anticipated following the optimistic news that US-China trade talks. Both nations will restart the trade talks to achieve a mutually beneficial deal. Until then, the truce is going to protect American consumers from further traiff hikes.
A safe haven metal hits more than one week low due to trade truce weighing on safe-haven demand. Consequently, gold prices slid from there on hopes for resumed discussions to settle the trade dispute between the United States and China, the world’s two largest economies.
Technically, gold is likely to face immediate support at $1,385, the 50% Fibonacci retracement level, while the resistance stays around $1,398, the 38.2% Fibonacci retracement level. A bearish breakout of this level could trigger further selling until $1,373, the 68.8% Fibo level.
On the daily timeframe, the 20 and 50 periods EMA are still likely to support gold around $1,362 level, and a substantial gap signifies that there’s an even a room for further selling in gold.
Key Trading Level: 1412.33
The idea is to stay bearish under $1,412 and bullish above $1,382 level today as the market may trade choppy until the US session.
Good luck, and stay tuned!