Bullish Gaps in Gold - Safe Haven Demand Triggered - Forex News by Strategia Forex

Bullish Gaps in Gold – Safe Haven Demand Triggered

Posted Monday, September 16, 2019 by
Arslan Butt • 1 min read

The Asian session opens dramatically as most of the safe-haven assets got gaps on the back of bullish fundamentals released during the weekend. The precious metal gold prices soared 1% as an assault on Saudi Arabia’s oil facilities bent the appetite for risk, ultimately expanding demand for the safe-haven bullion, while investors anticipated monetary loosening from major central bank meetings.

On Saturday, drones bombed an oil processing plant at Abqaiq and around Khurais area, tapping out daily 5.7 million barrels of crude production. Around 50% of the kingdom’s oil output has been impacted as a result. The news is keeping gold and crude oil on fire.

In addition to this, investors are placing bullish bets on gold ahead of interest rate decision from the Fed, which is very likely to cut the interest rate later this week.

 GOLD – XAU/USD – Technical Analysis 

On the technical side, gold is still trading in the broad trading range of $1,520 – $1,486. However, the 50 periods EMA is extending an immediate resistance around $1,506/7 area. It’s hard to expect further buying in gold unless the $1,507 region is violated.

The RSI is holding in the selling zone, and the way EMA is pushing gold lower, it looks like gold will take a bearish reversal below $1,507 area today. On the lower side, support stays at $1,495 and $1,485.

Gold – XAU/USD – Technical Levels

Support Resistance

1501.69 1505.93

1499.39 1507.87

1495.15 1512.11

Key Trading Level: 1503.63

 

Gold – XAU/USD – Trade Signal

For the moment, we are holding our forex trading signal to stay bullish above 1505.125 with a stop loss below 1501.125 and take profit of around 1508.125.

Good luck!

 

 

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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