Bullish Gaps in Gold – Safe Haven Demand Triggered
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
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.