Gold Violates Bearish Channel - Is It Going Higher to 1,561?
|On Thursday, the precious metal gold prices are trading bullish around 1,556 area amid weakness in the U.S. Dollar. The dollar pushed up the foreign market for dollar-denominated gold. Lower demand for risky assets and a dive in U.S. Treasury yields also boosted the market.
Gold's demand despite the faded uncertainty as China pledged not to force U.S. companies for technology transfer in exchange for access to its market. Both countries assured not to devalue their currency to benefit their exporters. From 2022 to 21, China will buy at least $200 billion more of U.S. products & services than it did in 2017. The deal, however, leaves in place 25% tariffs on $250B goods of Chinese industrial products used by U.S. manufacturers.
|
Support |
Pivot Point |
Resistance |
|
1549.41 |
1553.86 |
1560.75 |
|
1542.53 |
1565.2 |
|
|
1531.19 |
1576.53 |
Technically, the precious metal gold has formed a bullish engulfing pattern, which is accompanied by the hammer candle on the intraday chart. Typically such patterns stimulate bullish inclination in the market.
Gold is trading bullish over healthy support of 1,553, and the extension of trading above this mark can drive further buying in the gold unto 1,560. Alternatively, the bearish crossover of 1,553 can lead bearishness unto 1,549.
Gold - XAU/USD - Trade Plan
Buy Above 1,555
Take Profit 1,561
Stop Loss 1,550
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