Home Daily Analysis Charts / Trade Ideas Gold Trades Bullish, Inline With Forecast. What’s Up Next?

Gold Trades Bullish, Inline With Forecast. What’s Up Next?


On Tuesday, the price for the safe-haven asset gold dropped below the psychologically important $1,300 level, despite the increased trade war between the U.S. and China.

The drop in the gold prices was triggered due to a trade war between China and the U.S. after China announced to take revenge a tariff-hike on $60 billion worth of U.S. goods.

The possibility of a continued trade war has shaken investors, as you know gold is a safe-haven investment asset. Gold prices tend to move in opposite directions to stock and other assets looked as risky, raised about 1.5% last week.

Gold’s Technical Outlook

Gold is has violated the next resistance level of 1,291 and jumps to 1-Month Highs Near $1300 as the trade war between the U.S. and China. For now, gold is facing resistance around the 1,302 level along with support around 1,284.

In fact, gold has formed a bullish engulfing pattern on the 4 hourly charts, which is suggesting a bullish trend in gold. The bullish breakout of 1,302 could extend gold prices towards 1,3907 today.

R3: 1298.58
R2: 1292.44
R1: 1289.24
Key Trading Level: 1286.3
S1: 1283.1
S2: 1280.16
S3: 1274.02

Gold – Trade Tips

Consider staying bullish over 1,286 and bearish below 1,301 to benefit choppy trading sessions. However, the violation of the trading range will determine further trends in gold.


Please enter your comment!
Please enter your name here