Gold shiny when uncertainties hit the market

The bull is in control of gold prices since May’19 bounce. Current upward movement of gold expected to continue as the fundamental situation turns from bad to worse. The trade war between the U.S and China was the main issue causing market uncertainties. Aside from the trade war, Brexit drama, Italy political struggle also drive the market to fear.

Recently we have U.S bond yield inversion which means a recession is not far. If no measure taken to curb the tension and anxiety of the market then we might see global market roll-down. (Gold will benefit greatly under the situation).

Click here to see Gold July 2019 forecast.

New Month

Monthly Chart

The price of gold continues upward and not quite finished yet. In the previous month, it was trapped between $1,390 – $1,430. But this month the price breakout with strong momentum, reach $1,500 from $1,400 in less than half-month. We expect the price to pause between $1,500 – $1,550 before continuing upward again.

Weekly Chart

Gold closed above $1,500 handle in the previous week. The precious metal is testing $1,500 support level this week and currently traded below it. The overall trend of gold is bullish and expected to continue to reach $1,550 resistance level. Traders could prepare to enter long positions when there is a bullish reaction near $1,500.

Daily Chart

No clue on gold next short-term direction. At the current time, the precious metal is testing the $1,500 support level. It is possible that gold could retrace further lower to test $1,480. On the long-term, the trend is bullish which suggest traders to look for long positions near $1,480 – $1,500.

Trade Plan

Bullish trade – A long positions from $1,480 – $1,500 is the option traders could take when there is a bullish reaction.

Bearish trade – Wait until the price fall below $1,480 and retrace toward $1,480 – $1,500 area. When there is a bearish reaction from the area, traders could jump in short positions with a tight stop above $1,500.