Our last week’s recommendation to short GOLD above 1432 yielded gains of over 300 pips to traders. This Gold weekly trading analysis is valid for the trading period between 01 to 05 July 2019.
As mentioned in our analysis earlier, GOLD breaking above 1345 was a sign for bulls to take out 1400 – the move was fairly quick with the GOLD gaining almost 12% in just over a month. Gold had wiped out all resistances built up over past several years on the back of US China trade tensions and tensions in the Middle East.
We expected Gold to find resistance at the 1433 level which was a major resistance levels seen in 2013 and 2010. While the price briefly shot through the level to reach a high of 1439, a strong pull back down to the 1400 levels was seen.
This week could provide GOLD with enough reasons to build upper and lower ranges of consolidation.
With the US-China trade talks back on track, GOLD is likely to test the support in 1380 to 1360 zone.
US-Iran tensions and any escalations from US or Iran could provide GOLD with yet another leg to retest 1433 resistance – this would provide traders with yet another opportunity to go short.
Recommendation for this week:
Short GOLD @ 1435 (after a H1 reversal bar) with Stoploss above 1440 for Targets 1400 and 1360.
Long GOLD @ 1365 (after a H1 reversal bar) with Stoploss below 1355 for Targets 1400 and 1430.