During the Asian session, gold prices inched on a weaker U.S. dollar over the uncertainty coming from G7 meeting tomorrow. However, the gains in gold prices remain limited as expectations of a U.S. interest rate rise is also in the highlights. That’s why there’s an indecision among investors. Don’t worry, I got a plan for you…

Gold – XAU/USD – Quick Technical View

It’s been a fortnight since gold has been stuck in a sideways range of  $1,287 – $1,306, perhaps due to the absence of real economic events.   

However, the technical side hasn’t changed much in this time frame. On the daily chart, gold tested the 50 periods EMA near $1,299 but failed to break above this level. The thing is, gold closed a rejection candle below the exponential moving average which is a pretty nice sign of the bearish sentiment among investors. But we can’t ignore the fact that the rejection candle can also be the result of thin trading volume.

Fellas, did you notice, gold also formed a descending triangle pattern? This is supporting the precious metal near $1,288 and also providing a resistance near $1,299. Historically, these patterns break downward.

Gold Daily Chart

We may have an opportunity to trade breakout tomorrow or on Monday as we will have a clear idea about the G7 summit. If you would like to stay on top of what to expect from the G7 meeting tomorrow, do check FX Leaders’ June 7: Economic Events Report for handy information.

Support     Resistance

1298.56    1304.9

1296.6    1306.86

1293.43    1310.03

Key Trading Level:    1301.73

Gold – XAU/USD – Trade Idea

Today, the idea is to stay bearish below $1,306 with a stop above $1,309 and a take profit of $1,290, whereas, buying is preferred above $1,289. All the best!