Gold Completes 38.2% Retracement - Buying Setup Ahead!
|The safe-haven-metal prices flashing red and dropped from the 6-year high because traders are cautious and are waiting for a fresh hint about what will happen ahead mainly due to de-escalating tension between the United States and Iran.
The safe-haven-metal prices surged more than 2% during the past two days, mainly due to increasing safe-haven demand in the wake of the US-Iran war.
The decline in the yellow-metal came today earlier in the morning despite the report that the United States has sent more troops to the Mideast and speculations that Tehran will retaliate for the U.S. airstrike that killed General Qassem Soleimani last week.
Meanwhile, global equities recovered today, with Chinese stocks gaining almost 1% in morning trade. Geopolitical headlines will take a driver seat in the calendar because of the market trader's stay on the wait-and-see mode.
Traders remain cautious and focused on the upcoming U.S. job report, which is scheduled to be released on Friday and the Federal Reserve's monetary policy path into 2020. Moreover, Fed officials, including Richard Clarida, John Williams, James Bullard, and Charles Evans will speak on Thursday.
| Support | Pivot Point | Resistance |
| 1561.72 | 1565.56 | 1568.68 |
| 1558.6 | 1572.51 | |
| 1551.65 | 1579.46 |
Gold continues to trade in a sideways trading range of 1,570 - 1,560. The exponential moving average is still bullish, and it may keep the XAU/USD prices higher today. On the higher side, gold prices are likely to trade bullish above 1,561 with an immediate hurdle around 1,571, and the violation of this level can extend buying until 1,582.
Gold - XAU/USD - Trade Setup
Gold - XAU/USD Buy Limit 1,563
Take Profit 1,572
Stop Loss 1,559
Gold - XAU/USD Buy Stop 1,572
Take Profit 1,579
Stop Loss 1,567
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