Home Forex Forex Market Analysis Gold Sideways Pattern Intact – Brace for a Breakout! 

Gold Sideways Pattern Intact – Brace for a Breakout! 

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The safe-haven-metal prices flashed green and rose by 0.6% to $1,553.15, mainly due to fresh uncertainty surrounding the United States and China phase-one trade deal.

At the Sino-US front, the United States decided that it will not remove tariffs on Chinese imports until the 2020 presidential elections. As a result, uncertainty surrounding the signing ceremony of phase one of the trade deal between the US and China emerged in the market. The meeting to sign the agreement is scheduled for today, while no details have yet been revealed regarding the contents of the trade deal.

It should be noted that the market traders are cautious and await for any detail release regarding the Sino-US phase-one trade deal ceremony for taking new directions. The meeting will take place today at the White House between the US & China (reportedly 11:30 am NY time but not confirmed).

The yellow metal rose at the starting of this week in the wake of U.S.-Iran tensions. However, risk sentiment recovered after when the two nations said they did not seek an intensification of the war. Therefore, we can say Iran-US war matter was the big reason behind the bullish gold rally last week.

On the other hand, the declining Treasury bond yields seem to push the greenback lower as well. The US Dollar Index, which tested the 97.50 marks earlier in the day, is now down 0.03% at 97.35. 

    


Daily Support and Resistance

  • S3 1518.31
  • S2 1531.09
  • S1 1538.79

Pivot Point 1543.86

  • R1 1551.57
  • R2 1556.64
  • R3 1569.41

Gold surged as the US Core CPI number undershot economists anticipate and poorly performed, sending bullish reversal in the gold. Currently, precious metal gold is trading over a strong support level of 1,551, and the extension of trading over this level can encourage further buying in the gold. 

Alternatively, the next resistance is expected to appear nearby 1,556 and 1,559. The breach of 1,551 can lead to gold towards 1,546. The bullish bias remains active today. Good luck! 

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