Home Daily Analysis Charts / Trade Ideas Over 200 Pips Plunge In Gold – What’s Wrong?

Over 200 Pips Plunge In Gold – What’s Wrong?

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On Monday, the precious metal gold slipped dramatically from a 14-month high $1,357, placed in the previous session. The Greenback strengthened on robust U.S. retail sales figures ahead of the U.S. Federal Reserve meeting this week. Most of the selling triggered after the U.S. dollar gained traction on Friday, with the dollar index climbing 0.6% on the day to 97.57.

Over the weekend, the India administration has boosted tariffs on 28 U.S. imported goods, retaliating the U.S. President Donald Trump’s decision to end trade concessions to India. First, China, then Mexico and now India, the market is all about a trade war. Gold traded lower around 0.6% to trade at $1,333.81 per ounce. Gold had hit $1,358.04 on Friday, its highest since April 11, 2018.

Gold – Technical Outlook

The precious metal gold is testing bullish trendline, which is supporting the bullion at $1,333. On the 4 hourly charts, a series of exponential moving averages are paving gold’s way towards $1,321. Whereas, the bullish channel is also expected to lend resistance around $1,350.

 

R3: 1416.65
R2: 1378.34
R1: 1360.09
Key Trading Level: 1340.03
S1: 1321.78
S2: 1301.72
S3: 1263.41

That leaves us two options:
Consider staying bearish under $1,332 with the aim of 1,321.
Alternatively, consider staying bullish over $1,335 to target 1,350. All the best!

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