Gold Trades Ascending Triangle – Trade War Fear Eases
On Thursday, the precious metal gold dropped to 1,543 level after placing a high of around 1,556. Risk-on sentiment was boosted after China and the United States accepted to continue talks to settle their protracted trade conflict.
The US-China Trade Talks – Safe Haven Fades
China’s Commerce Ministry stated its trade crew is likely to have trade talks with the US in order to have high-level negotiations in early October. Gold has surged nearly 23% this year over the trade war between the world’s two largest economies. Until the trade talks are done, both nations are expected to refrain from inflicting additional tariffs which may give a boost to stock markets and drive bearish trend in gold.
GOLD – XAU/USD – Technical Analysis
Gold has formed an ascending triangle pattern which is likely to extend resistance around 1,557 along with support around 1,535.
The RSI is holding in the buying zone, but it’s direction is bearish. It means, you need to keep a close eye on RSI – if it crosses below 50, we may have a sell-trade.
The 50 and 100 periods EMA are suggesting bullish bias, and are extending support around 1,535 area.
XAU/USD – Technical Levels
Support Resistance
1506.6 1544.74
1492.75 1569.03
1454.61 1607.17
Key Trading Level: 1530.89
Gold – XAU/USD – Technical Levels
Gold may offer choppy trading opportunities ahead of US ADP figures. Therefore, the idea is to stay bearish below 1,557 and bullish above 1,535 area until breakout triggers.
Good luck!
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