Sideways Range in Gold – Trade Choppy or Wait for Breakout
During the Asian session, the precious metal gold prices tossed in profits and losses, maintaining a narrow trading range of $1,530 – $1,518. On the second day of this week, gold is still supported over renewed tariffs imposed by the United States and China.
On the other hand, both countries decided a date during this month to continue trade discussions which are a bearish news safe haven and it’s weighing on gold. For the moment, gold is trading at $1,524 with no clear trend.
Lately, on Sunday, the United States imposed 15% new tariffs on Chinese goods including television and shoes and on the flip side, China forced tariffs on US crude oil and other products goods in retaliatory action.
So, the level of uncertainty from both nations is keeping gold supported, while a stronger dollar is weighing on the precious metal.
Technically, gold is facing support of around $1,518 and resistance at $1,530. Candlesticks aren’t suggesting anything as the market is only forming Doji and spinning top candles which don’t suggest the direction of the market.
A bearish breakout could lead gold prices towards $1,507 while bullish breakout of $1,530 can trigger buying until $1,545.
Daily Support and Resistance
S3 1502.75
S2 1514.7
S1 1521.97
Pivot Point 1526.65
R1 1533.92
R2 1538.6
R3 1550.55
GOLD – XAU/USD – Trade Plan
Since the trend isn’t clear yet, I’m looking to either stay out of the market or trade within the sideways range by selling at top $1,530 and buying at $1,507.
Good luck!
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