Gold’s Sideways Range Remains Intact – Quick Setup to Trade
Arslan Butt • 1 min read
On Monday. the precious metal gold slipped lower from $1,400 level to trade around $1,394. One of the reasons behind a bearish sell-off was the increasing expectations that the US Federal Reserve will not cut interest rates aggressively, which ultimately boosted the dollar, making gold expensive for holders of other currencies.
The market is still focusing on the stronger than expected jobs figures reported on Friday. The better than expected NFP report also supported gold prices by reducing the likelihood of a steep rate cut at the Fed’s July 30-31 meeting.
Donald Trump’s trade war with China and concerns over mounting interest rates initiated the stock market sell-off, adding losses worth $2tn in global stock markets.
GOLD – XAU/USD – Technical Outlook
On the technical side, gold continues to consolidate in a wide trading range of 1,438 – 1,380, helping is secure choppy trading signals. The RSI and Stochastics are neutral around 50, suggesting a neutral bias for traders. In case the market violates 1,383 trading level, we may see gold prices falling towards 1,373 and even towards 1,355 later this week,
On the upper side, gold can stay bullish up to 1,410; however, to achieve this level gold has to violate 1,401, the crucial level for today.
Key Trading Level: 1401.49
Gold – XAU/USD – Trade Idea
The idea is to stay bearish under $1,401 with a stop loss over 1,404 and take profit of around 1,391 and 1,386.