Choppy Trading In Gold – Sell High, Buy Low!
Gold is stuck in the overbought zone, and investors are looking for a correction before they continue buying again...
On Monday, the precious metal gold prices floated around the $1,500 per ounce level as the US-China trade dispute crept on, while concerns of a global economic slowdown intensified.
On Friday, US President Donald Trump announced that he was not inclined to make a settlement with China and even questioned the effectiveness of the September round of trade talks. Consequently, White House trade adviser Peter Navarro stated that the US was still preparing to endure another round of trade discussions with Chinese negotiators.
Last week, the Chicago Fed President Charles Evans drove a sell-off in the dollar after he signaled his openness towards lowering rates to support inflation and to counter risks to economic growth. The weaker dollar also triggered buying in gold.
GOLD – XAU/USD – Technical Outlook
Gold is stuck in the overbought zone, and investors are looking for a correction before they continue buying again.
Stochastics and RSI are holding in the overbought zone, and these may trigger further bearish retracement in gold today.
The Fibonacci indicator is supporting gold around 1,498 and 1,490 (23.6% & 38.2%) levels.
XAU/USD – Technical Levels
Support Resistance
1484.95 1514.16
1468.54 1526.96
1439.33 1556.17
Key Trading Level: 1497.75
Gold – XAU/USD – Trade Plan
Fellas, I’m not expecting trend continuation in gold, therefore, the idea will be to stay bearish below 1,510 and bullish above 1,489.
Good luck!
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