FxWirePro: Gold trades lower on easing trade war, good to sell on rallies
Gold has declined almost $15 yesterday after a good recovery till $1347. The major reason for decline is due to increase in risk appetite. Trump twitted that ‘we are not in a trade war with China’ after China imposed new…
Gold has declined almost $15 yesterday after a good recovery till $1347. The major reason for decline is due to increase in risk appetite. Trump twitted that ‘we are not in a trade war with China’ after China imposed new tariffs for 106 US products. The ease in trade war has dragged the prices of safe haven assets like yen and gold. The yellow metal hits low of $1326.65 and is currently trading around $1326.80.
US dollar index has shown a slight jump above 55- day EMA and this confirms minor bullishness for jump till 90.93.
The yellow metal is facing major resistance at $1347 and any minor bullishness only above that level. Any break above $1347 will take the gold till $1355/$1361 Overall bullish continuation only above $1362. The minor resistance is at $1337.50/$1341.
On the lower side, near term support is around $1327 (20- day MA) and any break below will drag the yellow metal down till $1323/$1320/$1314.
It is good to sell on rallies around $1331-32 with SL around $1337.50 for the TP of $1321/1316.
