XAUUSD Gold Trade Plan: Correction Consolidation and Bearish Continuation

Near Term Bearish Gold Fundamentals

• Improving optimism is picking up as the U.S. and China appear to be moving closer to resolving their trade dispute.
• Growing momentum in the U.S. dollar, and rising equity markets.  Equity markets soon will be normalised. Because of the government shutdown, the U.S. economic data remains relatively light. Markets are pricing: No News is Good News”
• No fresh need for safe-haven assets in the near term.

Gold is doing what it’s supposed to as a hedge: it’s taking a breather as other asset classes rally.

Technically:

Gold is still in the bear market. The trend change is above $ 1.375.

Gold Prices will remain under bearish pressure below 1300. We really need to see signs of lower growth in the US for gold to see a sustained push above 1300.

Markets are closed Monday in recognition of Martin Luther King Jr. Day.

We predict a minor correction somewhere 1278 – 1277 towards 1285 – A Bullish Bat Pattern-

After a consolidation XAUUSD is likely to retest 1276.50 support. The breakout of 1276 would push the prices towards 1265-1261 zone.

The bigger fight may start at $ 1.265. If some really strong buyers do not come in, the Gold prices will meet $ 1.240.

Fresh Entry Levels for Gold Trade: ( Stop Above 1300 )

Sell the Potential Pullback at 1285

Sell the breakout of 1276

Targets: 1265 1250 1238

Disclaimer: This chart has been published for educational purposes only and cannot be considered as trading advice.

This pattern/ analysis prepared by the global analysts of Chartreaderpro.com and published on Talkmarkets.com. Commercial distribution is strictly prohibited.