The golden metal in the 2-hour chart illustrates the potential rally, which Gold could begin in the coming sessions. The reasons for our bullish scenario are as follows:
Fundamental traders are skeptic about the agreement between the U.S. and China.
The yellow metal could be the safe heaven facing the risks of a global deceleration.
Institutional activity published on the latest CFTC report still shows a bullish bias. Big traders hold 85.04% of long positions. The risk of our scenario comes from the increase in short trades of 8.52% (WoW). The positioning in the long-side reported a rise of 2.41% (WoW).
The Elliott wave formation calls for an incomplete bullish corrective sequence. Gold moves inside a wave B labeled in black. This three-waves sequence looks incomplete and should develop a wave ((c)) in red.
The bullish scenario will valid if Gold breaks and closes above $1,497.5. The ascending channel unveils the potential target area, which could be near to the $1,540 per ounce. The invalidation level is at $1,474.19.
If the bullish scenario is invalidated, in the mid-term, Gold could visit the $1,453 level.
Trading plan summary
Entry Level: $1,495.5
Protective Stop: $1,474.1
1st Profit Target: $1,514.5
2nd Profit Target: $1,527.5
3rd Profit Target: $1,543.1
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.