Bears Dominate Gold Amid Upbeat US Data – Check Out Buy Limit - Forex News by FX Leaders

Bears Dominate Gold Amid Upbeat US Data – Check Out Buy Limit

Posted Wednesday, July 17, 2019 by
Arslan Butt • 1 min read

During the Asian session, the yellow metal gold is modestly down, losing -0.39% to trade at $1,405.75. The robust US economic data gave the monetary policy doves some rest on their thoughts of several interest rate cuts in the coming months.

The dollar gained bullish momentum on robust US retail sales figure, while expectations of an interest rate cut by the Federal Reserve diminish, placing a bearish pressure on gold prices.

On the trade front, the extended uncertainties over trade between Washington and Beijing kept gold supportive. The US President Donald Trump stated there’s still a long way left to conclude a trade deal with China, but he could inflict tariffs on a further $325 billion worth of Chinese goods if needed.

GOLD – XAU/USD – Technical Outlook

On the technical front, gold is still facing strong support around the psychological mark of around 1,400. Gold is also facing double bottom support at 1,400 level and the bearish breakout of this level can bring more sellers until 1,398 and 1,392. On the other hand, buying can be seen above the 1,400 level today.

R3: 1438.61
R2: 1423.23
R1: 1414.72
Key Trading Level: 1407.85
S1: 1399.34
S2: 1392.47
S3: 1377.09

The RSI and Stochastic are holding into the oversold zone and may bring bullish retracement in gold. Therefore we have set our buy limit at 1,400 to capture quick take profit around 1,404.

Stay tuned to FX Leaders for more updates on gold and other trade opportunities. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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