During the previous week, the Fed Governor Brainard remarked that the outlook for the global economy seems brighter now compared to the previous years. He tried to underpin the Buck but failed in his attempt.

Another reason for the bullish metal was the dramatic slump in the WTI Crude Oil prices that amplified the demand for haven assets. As a matter of fact, the sudden drops in the energy prices drag the energy sector shares of the U.S. stock markets. Consequently, investors switch their investments to the bullion market in order to protect themselves against uncertainty. Thus, the gold has traded bullish since last week.

Forex Trading Signal

Investors are recommended to enter a buy position above $1263, having placed a stop loss below $1259 and a take profit above $1270.

Gold – Ascending Triangle Breakout on 4-Hour Chart

Technical Outlook – Intraday

We can see in the 4-hour chart that the yellow metal has broken above the ascending triangle pattern at $1262. At the moment, the same level is working as a support the level for the gold.

In addition, the momentum indicators, RSI and Stochastic are holding in the buying zone. Whereby, the lagging indicator, 50 periods EMA, is also extending support to the bullish gold.  

Today, most of the traders will not be at their desks on account of the public holiday in the U.S. and Eurozone. Therefore, trading opportunities are likely to remain limited.