Safe Haven Gold Standstill in Range – Quick Outlook
Arslan Butt • 1 min read
During the Asian session, GOLD prices fell but remained above the $1,500 level. However, during the European session, the precious metal failed to stay above $1,500 psychological level.
The safe-haven metal prices increased in the past session due to the drone attack on Saudia Arabian crude oil facilities that provided benefits to almost all haven assets.
Looking forward, the meeting of United States Federal Reserve is scheduled on Tuesday and Wednesday. The Federal Reserve is broadly expected to cut interest rates by 25 basis points. Whereas the unexpectedly stronger retail sales and consumer sentiment data released on Friday can cause a change in the policy decision.
In addition, all eyes will be on Jerome Powell’s post-decision press conference which is scheduled to happen on Wednesday.
At the Sino-US trade front, China’s Commerce Ministry announced today that Vice Finance Minister Liao Min will visit the US later this week for trade discussions.
GOLD – XAU/USD – Technical Analysis
Gold continues to trade in the broad trading range of $1,520 – $1,486. However, the 50 periods EMA is extending an immediate hurdle 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.
Daily Support and Resistance
Pivot Point 1500.49
Gold – XAU/USD – Trade Signal
Today, the idea is to stay bearish below 1,500 level with a stop loss above 1,504 and take profit around 1,494 area.