Gold Breaks Triple Top 1,518 Level – Boosted Safe Haven Demand Plays
During the early Asian session, the yellow-metal prices surged to 1,525 area as the global stock indices flashed red amid intensifying uncertainties surrounding global trade concerns. Gold prices have climbed more than 1% due to rising safe-haven demand.
The market is still trading the risk-off sentiment over intensifying geopolitical tensions from the Middle East after the Saudi attacks as well as Brexit issues.
Gold is one safe-haven asset, everyone runs to during times of uncertainty and trade war. The whole situation is likely to keep gold in the range of $1,500-$1,550.
On the other hand, the United States and Japan trade discussions seem to have broken down. Both nations are trying to reach an agreement during this week, but the deal could be based on limitations and are possibly not expected to include changes to tariffs on autos and auto parts.
GOLD – XAU/USD – Technical Outlook
On the technical side, gold has violated the triple top resistance level at 1,518, which is now expected to lead gold prices towards 1,535 area. On the other hand, the 50 and 100 periods EMA’s are supporting gold at 1,512 area, signaling chances of a bullish trend in gold.
The RSI and Stochastics are holding in the buying zone, supporting the bullish sentiment today.
Daily Support and Resistance
S3 1469.81
S2 1490.61
S1 1503.38
Pivot Point 1511.42
R1 1524.19
R2 1532.22
R3 1553.03
Gold – XAU/USD – Trade Plan
We are holding a trading signal to stay bullish above 1522.46 with a stop loss around 1518.4 and take profit at 1525.46.
Good luck!
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