Gold Signal Hits Take Profit – Brace yourself for Next Trade

Gold prices are nearly steady in the Asian trading on Friday and holding around-daily lows of $1,407. Some profit-taking by intraday traders was expected, which is why we suggested staying bearish on gold on Thursday.

GOLD has already completed the 61.8% Fibonacci retracement at $1,404 on the release of the positive inflation rate. The consumer price index expanded 0.1% in June, while the hike in the cost of living over the past 12 months slid to four-month low 1.6% from 1.8%.

However, traders continue to keep a bullish bias on the back of the Fed rate cut sentiments and weakness in the dollar. On Thursday, the dollar index slipped to a five-day low after Federal Reserve Chair Jerome Powell retained the gate open for US interest rate cuts, though traders were wary of selling dollars aggressively until a policy review later this month.

On the technical front, gold is forming a bullish setup after completing 61.8% retracement. It has recently tested the 50 and 100 periods EMA at $1,404 trading level. Interestingly, the 2-hour timeframe is also showing a series of three bullish candles which in technical terms are known as “three white soldiers”.

Gold continues its bullish trend until $1,412 initially and then the next resistance can be seen around $1,418. On the lower side, the violation of $1,404 can extend the selling trend towards $1,398 and $1,390 today.

XAU/USD – Gold – Trade Signal

We have opened a forex trading signal to stay bullish above $1,409 with a stop loss below $1,406 and take profit of around $1,412. You can hold the position until $1,418 with a breakeven stop loss if you like.

Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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