Gold Hits Over 6-Year High – Safe Haven Demand Dominates
Gold prices jumped 1% to trade at $1,488, the highest level in more than six years. Traders feel less confident and uncertain as the trade..
On Wednesday, gold prices jumped 1% to trade at $1,488, the highest level in more than six years. Traders feel less confident and uncertain as the trade war between China and the United States showed no signs of abating, spurring investors to seek refuge in safe-haven assets.
Safe-haven demand was triggered further after China allowed its currency to weaken past the psychologically important level of 7 per dollar. Weaker dollar triggered a bearish bias after the US Treasury Secretary Steven Mnuchin labeled China a currency manipulator, marking a sharp escalation in the year-long trade dispute between the two economies.
GOLD – XAU/USD – Technical Outlook
GOLD is trading on a bullish mode, adding around 3.2% so far since the new week has begun. The ascending triangle pattern violated the upper resistance level of 1,441 signifying further demand for gold.
These kinds of patterns are known for the continuation of a bullish or bearish trend. In our case, it’s an ascending triangle pattern which typically drives upward movement.
On the upper side, gold has already achieved our initial target of 1,480 and now investors eye 1,490 and 1,520.
Support Resistance
1462.28 1480.71
1450.13 1486.99
1431.7 1505.42
Key Trading Level: 1468.56
Gold – XAU/USD – Trade Plan
Gold is likely to stay bullish above 1468.56 and bearish below 1,465. Consider taking buy position with 30 pips stop and 40 pips take profit around 1,490 and 1,500 trading level today.
Good luck!
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