Home Forex Forex Market Analysis Gold’s Bearish Channel Breakout Drives Bulls – What’s Next?

Gold’s Bearish Channel Breakout Drives Bulls – What’s Next?

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On Thursday, the precious metal gold surged to trade around 1,468 level extending gains to a third session, as soft Chinese figures and risk about whether Beijing and Washington will strike a trade agreement anytime soon depressed demand for riskier assets.

China and the United States are enduring “in-depth” talks on a first-phase trade deal, and cutting tariffs is a crucial requirement for settling, the Chinese commerce ministry stated.

The report came from the Wall Street Journal that the United States and China hit a snag over farm purchases. Notably, President Trump recently said that China committed to buying up to $50 billion in U.S. soybeans, pork, and other agricultural products as part of a phase one trade agreement.

However, China is unwilling to quantify its farm purchases now, as in result, instantly activated a risk-off sentiment in the American markets that destroyed the Wall Street party.

XAU/USD – Daily Technical Levels

Support     Resistance
1,458.56      1,467.83
1,453.59      1,472.13
1,444.32      1,481.4
Pivot Point 1,462.86

Gold has crossed over a triple top resistance level of 1,466. CLosing of the bullish candle above this level is suggesting the bullish trend is still strong. While the MACD and RSI are also supporting the buying trend in gold.

At the moment, gold has immediate support around 1,466 and above this, gold has the potential to target 1,472 and 1,479. Let’s consider staying bullish above 1,466 today. All the best!

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