The price of gold is trading at 1802.54 level at the time of writing. It has failed to stabilize under the 1,800 psychological level signaling strong buying. Technically, the yellow metal seems poised to move back higher after ending its downside movement. Yesterday, the XAU/USD registered a false breakdown below the near-term downside obstacles announcing that the sell-off could be over.
Gold rallied after the US Pending Home Sales, and the Goods Trade Balance reported worse than expected data yesterday. Today, some poor economic figures reported by the US could lift the XAU/USD.
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US unemployment claims 205K expected
The US Unemployment Claims indicator is expected at 205K in the last week, the same as the previous reporting period. In addition, the Chicago PMI is expected at 61.9 points in December versus 61.8 points in November.
From the technical point of view, XAU/USD registered a major bullish engulfing in yesterday’s trading session. The false breakdown below the median line (ml) and under the weekly S1 (1792.14) confirmed a strong demand zone. Coming back and stabilizing above the weekly pivot point of 1801.43 could indicate further growth. However, the upside scenario could be invalidated if the yellow metal drops and stabilizes below 1,787.78 and under the median line (ml).
Free Forex Signals – BUY GOLD At 1806.66
(Click on image to enlarge)
Free Forex Signals Entry Price And Takes Profit
- Instrument: GOLD (XAUUSD)
- Order Type: BUY STOP
- Entry price: 1844.83
- Stop Loss: 1784.21
- TP1: 1806.66
- My Risk: 1%
- Risk / Reward Ratio: 1:1.7
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