Gold Tests Triple Top Resistance – is There a Sell Trade?
Arslan Butt • 1 min read
The safe-haven metal gold is flashing green since the drone attack on Saudi Arabia’s crude oil filed last week and it’s been providing support to gold over safe-haven and political risk. Last week, the precious metal gold rose 0.6% to trade at $1,523.75, but later the prices recovered over easing remarks from Donald Trump. Moreover, Saudi Arabia is also expected to resume oil production by September end.
While the report came from unknown Saudi officials that the full recovery of Saudi Arabia WTI crude oil inventories need more time than the kingdom promised, which once again is supporting the crude oil and gold prices.
The safe-haven metal prices dropped as traders were depressed with an additional rate cut which was delivered by the United States Federal Reserve. Meanwhile, Some traders were expecting that the Federal Reserve will make a half-point cut. The Federal Reserve is still scheduled to hold two meetings during 2019, in October and December, but the chances of additional rate cuts are still uncertain, which is why we see support to gold.
GOLD – XAU/USD – Technical Outlook
Technically, the precious metal is still facing support around 1,508 area along with a double top resistance around 1,520 levels. The breakout of 1,520 can extend bullish rally until 1,535, but we need to have a solid reason to expect such a move.
On the lower side, 1,508 may keep the gold supported, helping us secure a buy position around this corner.
Daily Support and Resistance
Pivot Point 1511.42
Gold – XAU/USD – Trading Signal
I will be looking to stay bullish above 1,508 area with a stop loss below 1,505 and take profit around 1,517 area.