Gold Traders Eye Breakout – Who’s Ready for the Trade?

Gold prices were opened at $1487.96 and have placed a high of $1496.260 and low of $1487.560 until now. The Gold is currently trading...

Arslan Butt•Thursday, October 24, 2019•1 min read

Gold prices opened at $1487.96 and have placed a high of $1496.260 and low of $1487.560 until now. Gold is currently trading at $1492.650 as of writing and has shown a bullish trend for the day. The Brexit uncertainty is keeping a higher demand for Gold and driving a rise in gold prices. The British Parliament is making it hard for PM Boris Johnson to fulfill his promise of delivering Brexit on October 31.

After the rejection of Johnson’s timetable for Brexit legislation by the UK Parliament on Tuesday, the expectations of another Brexit delay are in the headlines. Analysts, however, are optimistic that a no-deal Brexit might be avoided.

On Friday, the Indian Diwali festival will begin, and Indian consumers are known to buy Gold during this festival. But this year, there are chances for almost 50% drop in gold demand from Indian consumers during Diwali because of higher prices of Gold and increased import duty on Gold.

On the economic data front, the US Dollar was under pressure due to a drop in HPI. At 18:00 GMT, the US House Price Index for the month of September dropped to 0.2% from the previous month’s 0.4%. The fall in the US Dollar caused a rise in Gold prices on Wednesday.

Gold -4 Hour Chart

Support Resistance
1488.42 1496.6
1484.23 1500.58
1476.06 1508.76
Key Trading Level: 1492.41

GOLD – XAU/USD – Forex Trading Signal
The technical side of the precious metal gold hasn’t changed much since October 11. Gold continues to trade in an asymmetric triangle pattern, which is extending resistance at 1,496 area along with support at 1,487.

The 20 periods EMA is also extending support at 1,487 area. Below this level, the 1,482 (double bottom) level is likely to extend support. Since ascending triangle patterns typically break on the upper side, the violation of 1,496 can lead gold prices towards 1,507 area.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.