GOLD: Is The Precious Metal Losing Its Shine?
Recapping last weeks bias on Gold my overall outlook for this week is bearish. At the time of writing this article on Monday evening, the daily candlestick appears to be forming a large shooting star at resistance. Zooming into the 4-Hour timeframe we can see with greater clarity multiple failed attempts at breaking out from the triangle. This coupled with all precious metals coming under pressure from a solid rebound in the US stock market at the start of this week.
Another key element for the short-term bearish outlook for Gold is due to DXY finding itself in higher territories again, respecting the fourth bounce of the bullish trendline and jumping back up above the 97.00 key level. Should the bullish target of 97.86 be reached this week this will definitely be a driving force to push Gold lower.
Something to be aware of if short positions are taken on Gold is the group of 20 meetings being held this week in Argentina. This will see the US and Chinese president meet face to face to discuss the heated trade war that shows no sign of de-escalating. Negative news for the Dollar could throw a knee-jerk reaction into the market pushing Gold higher, in short, trade carefully and protect your capital!
Written by Sam Moore
Instagram - @Moore_Fx...