Gold tramps to the north due to the global crisis. Generally, all commodities moving by the amalgamation of demand and supply. So many factors affect the gold price, such as the inverse effect of dollar rate, interest rate cut, inflation, Quantitative easing of central banks, etc. Apart from this, a hedge fund to a man with none also treats it as an investment opportunity to beat inflation. Eight percent of gold only utilize in Tech production, remain there are as safe heaven investments and ornaments.
Trump trade war upfront against china due to Chinese govt intentionally low their currency value to makes exports cheaper as well as create trade imbalance. These are the reasons behind the relentless march of the gold towards up.
According to the technical point of view, in the Day chart, it achieves the full target of the “Cup and Handles” pattern, that’s why it walks around 1495-1527. Our Usain bolt (GOLD) ran in the marathon instead of Mo Farah and exhausting. Sentimental data says that long unwinding going there. Bulls are walking away now.
Bottom line: Don’t enter any new long trade in XAUUSD. Enter buy only a weekly candle close above 1527. what should we do now, if a Day candle close below 1493, enter sell as target 1450 and stop-loss as 1527.