This week, the most active precious metal gold is currently up to $7.20 and trading around $1511 per troy ounce after placing high around 1,528. This is a new record close for this calendar year. Although gold futures had traded to an intraday high of $1545 on Monday of this week, the effective close came in at $1514.
On Friday, Gold dropped 1% as traders started taking profit in gold ahead of the weekend after seeing a strong run in equities sector.
Worries about a global recession and lack of clarity on the U.S.-China trade war kept bullion on track for a third straight weekly gain.
Gold – XAU/USD – Technical Analysis
On the fundamental side, gold has completed 78.6% Fibonacci extension at $1,527 after placing a high around $1,535.
Taking a look at 3 hourly timeframes, the RSI and Stochastics are stuck in the overbought zone, signaling sellers are looming around the corner.
Although gold’s trend is still bullish, but traders need slight correction before taking another buying position in gold.
On the lower side, gold can drop towards 1,518 and 1,512 before bouncing off. Whereas, resistance stays at 1,527 and 1,535 today.
Key Trading Level: 1499.93
Gold – XAU/USD – Trading Tips
Consider staying bullish above 1,510 and bearish below 1,527 today as the market is now likely to trade within this range. Choppy trading is appreciated during the New York session. All the best!