FxWirePro: Gold Drifts In Sideways Hovering At 21-DMAs, Major Uptrend Travels In Saucer – Trading & Hedging Setup

Gold rebounded close to 2% during weekend, a day after a steep sell-off, as the U.S. dollar weakened and the U.S. Federal Reserve signaled a prolonged low interest rate strategy.

Spot gold price has surged 1.85% to $1,965.026 per ounce, taking gains this week to about 1.26%. Yellow metal prices tumbled as much as 4.67% in previous weeks, fell below $1,950 levels on last Thursday after U.S. Treasury yields gained following Fed Chair Jerome Powell’s speech.
Technically, XAUUSD bulls bounce back on strong support of 1,901 levels but showing stiff resistance at 21-DMAs, consequently, the trend has been drifting in sideways upon overbought pressures. Thereby, the previous uptrend seems to be momentarily exhausted on overbought pressures.

On a broader perspective, bulls extend saucer pattern, retraces more than 88.6% Fibonacci levels & hits all-time highs of $2,075 levels, both leading & lagging oscillators substantiate the major uptrend despite minor overbought hiccups.

Trade tips:

At spot reference: $1,966. level (while articulating), on trading grounds, boundary options trading strategy with upper strikes at $1,979 and lower strikes at $1,944.500 levels. The strategy is most likely to fetch assured yields as long as the underlying spot price remains between these two strikes on the expiration.

Alternatively, on hedging grounds, we already advocated long positions CME gold contracts, as we could foresee more upside risks and intensified buying interests on safe-haven sentiments amid geopolitical turmoil and the global financial crisis, we wish to uphold long hedges by rolling over to September’2020 deliveries.