Gold on waiting for a bounce from $1,500

The tension between the U.S and China slowly cooled as both parties working together to reach a deal on the trade war. Next month, President Trump expected to meet with China’s Xi Jinping in Chile. If both parties could reach an agreement on the trade war then the tension will loosen more and gold might start moving lower.

This month has not finished yet and the Fed will announce their decision on the interest rate. Expect more major swing between both events in gold prices.

Click here to see Gold September 2019 forecast.

New Month

Monthly Chart

Gold prices stuck at $1,500 – $1,550 resistance area and showed rejection in the previous month trading. Ideally, the price expected to correct forther lower and test the bottom of channel before continuing its uptrend. At the end of this month, it seems gold might settle between $1,500 – $1,550 area.

Weekly Chart

$1,480 – $1,500 is the key area to watch for a bounce. Gold never close below the support $1,480 and currently attempting to bounce from $1,480 – $1,500. If the price continues upward then we could expect $1,550 will become the upside target.

Daily Chart

On the daily chart, the price of gold continue under pressure and trade near $1,480 – $1,500 most of the time. But, there is bullish attempt by the end of previous week and the price might breakout above the trendline. Nothing much change and traders will wait for further trigger in gold before jump in positions.

Trade Plan

Bullish trade – A long positions from $1,480 – $1,500 is the option, traders could take when there is a bullish reaction. (Same strategy as last month)

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. (Same strategy as last month)