Risk-on Sentiment Weighs on Gold – Quick Trade Setup
Arslan Butt • 1 min read
Gold market remains unchanged and gains support above the critical $1,500 level as investors are keenly looking forward to the Europan Central Bank (ECB) meeting and rate decision, which is scheduled for later in the day.
Investors are expecting the European Central Bank to deliver a rate cut and follow the international course monetary policy easing.
Besides that, the market is also feeling hesitant as the United States Federal Reserve’s policy meeting will also remain in focus which is due next week. Moreover, fresh pressure came from President Donal Trump who tweeted yesterday that “boneheads” at the Federal Reserve should cut to “ZERO, or below,” had little impact on prices.
Earlier this week, China said it would exempt a range of US goods from 25% of extra tariffs which is fading the demand for safe-haven assets like gold and silver.
GOLD – XAU/USD – Technical Outlook
On the technical side, gold is facing substantial resistance at 50% Fibonacci retracement area of $1,505, and the violation of this can extend bullish rally until $1,512, which marks 61.8% Fibonacci retracement levels. On the lower side, support stays around $1,500 and $1,494.
Daily Support and Resistance
Pivot Point 1494.17
Gold- XAU/USD – Forex Signal
We just opened a buy second buy signal to stay bullish above 1504 with a stop loss below 1500.495 and take profit of around 1507.