Gold Seems Directionless Due to Lack of Catalysts – Quick Trade Plan

Posted Monday, April 27, 2020 by
Arslan Butt • 1 min read

During Monday’s Asian session, the safe haven metal prices edged slightly up mainly due to continuous economic stimulus in order to control the COVID-19 pandemic’s economic woes. Earlier in the day, GOLD prices registered 0.30% losses. Whereas, the yellow metal prices remain under pressure due to the lack of major catalysts in the day ahead. As of writing, gold is currently trading at 1,732.15 and consolidating in the range between 1,731.50 and 1,745.75.

Gold futures are trading bearish now around 1,720 as we mentioned that the yellow metal’s previous session witnessed declines, because investors slowly lost their positions in the yellow metal mainly as the Asian stocks’ recorded gains. However, US President Donald Trump got criticized for the idea to use disinfectant injections as a trial for the virus treatment. Besides this, the Republican leader’s suggestions about opening the economy sooner than later keep the market calm.

As per the latest report from the Centers for Disease Control and Prevention (CDC), the US death toll due to the virus rose to 52,459 against the previous day’s 50,439 while the cases surged to 928,619 against 895,766 at 4:00 PM on April 25.

XAU/USD – Trading Levels
Support Resistance
1732.65 1748.95
1722.9 1755.5
1716.35 1765.25
Pivot Point 1739.2

Gold is facing triple top resistance at 1,737 level, and closing of candles below this level is suggesting chances of bearish retracement in the market. Currently, gold is finding support at 1,718. In case it breaks lower, next support is likely to be found at 1,708; however, the bullish bias remains solid. The leading indicators, such as RSI and Stochastic, are suggesting a bullish bias for gold. Thus, the breakout of 1,737 level can trigger more buying in the yellow metal, and it may lead it towards 1,750. Good luck!

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