Gold Widens Trading Range Amid Boosted Safe Haven Appeal
Arslan Butt • 1 min read
What’s up, traders.
On Wednesday, the yellow metal gold prices edged slightly lower about 0.07%, falling from 1,504 to 1,499 during the Asian session. A slight bearishness in gold came after the United States delayed tariffs on some Chinese imports, easing trade war sentiments, although political risks and faltering global growth concerns limited losses for the safe-haven metal.
A day before, the US President Donald Trump backed off his 1st September deadline for 10% tariffs on leftover Chinese imports, holding duties on cellphones, laptops and other consumer goods, in the beliefs of blunting the influence on US holiday sales.
With diminishing trade war sentiments, investors considered it better to get rid of gold and to move funds to higher-yielding securities such as stock markets.
XAU/USD – GOLD – Technical Outlook
On the technical front, gold has tested and failed to cross below the 50 periods EMA support on the 4-hour timeframe. The EMA was extending support around 1,483 and this level has proved to be very solid.
The RSI and Stochastics have crossed below 50, suggesting bearish bias among investors. However, investors are still unsure about gold’s trend due to the mixture of bullish and bearish fundamental news.
For now, gold may continue trading choppy session in between a wide trading range of 1,508 – 1,484.
XAU/USD – Technical Levels
Key Trading Level: 1505.39
XAU/USD – Gold – Trade Idea
Traders, I will be looking to stay bearish below 1,503 with a stop loss above 1,508 and take profit of around 1,485. At the same time, buying can be seen above 1,480 today.