Bearish Gold Completes Fibonacci Retracement – Brace for Sell Signal


The safe-haven-metal prices consolidate in the narrow range after the reports of the possible pause in the signing of the incomplete trade deal between the United States and China.

Reports suggest that the signing of a trade deal may not happen during this month, as previously expected, but trade talks continue on terms and value. Moreover, China wants the United States to stop tariff hikes on Chinese goods in the wake of an incomplete trade deal.

The safe-haven-metal prices are unstable during this week due to uncertainty surrounding the United States and China trade deal. As we know, the gold prices have traded bullish, gaining by 16% so far this year, mainly due to intensifying tensions between the United States and China.

At the Fed front, the monetary rate cut policy from the United States Federal Reserve was also supportive of GOLD prices. The Federal Reserve delivered the rate cut for the 3rd time this year. It has confirmed that it’s less likely to have more rate cuts in the near future until the economy strongly needs it.

The Chicago Fed President Charle Evans has stated that the United States economy is at a good place right now. He also said that he would be strictly observing inflation to decide on how the future position of monetary policy should be. Gold has traded mostly in line with our expectations, as it stays bullish to complete 23.6% correction at 1,487 level and 38.2% Fibonacci level of 1,494. For now, this level is extending substantial resistance to gold.

Daily Support and Resistance

S3 1466.65
S2 1477.98
S1 1484.27
Pivot Point 1489.31
R1 1495.6
R2 1500.64
R3 1511.97

Technically, XAU/USD can soar further until 50 periods EMA resistance and 50% Fibo level of 1,497 area today. Below this level, we can expect a bearish reversal in gold.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments