Gold on the path lower

Gold price shone when the trade war tension between U.S and China rose. In recent months, the tension between U.S and China slowly recede and both parties exchanging positive messages. However, no deal reached yet at the current time. Traders will wait for next month’s meeting between both leaders to determine if the trade tension will continue to recede or not.

Under the current situation, gold prices might weaken until uncertainties kick-in.

Click here to see Gold October 2019 forecast.

New Month

Monthly Chart

Gold stuck near $1,500 – $1,550 area and this month the precious metal starts to move lower. We have a lower movement below October low and might continue toward $1,390 – $1,430 area. At the current time, traders will wait the price to move further lower and look for long positions near $1,390 – $1,430 area.

Weekly Chart

Gold slipped below $1,500 with strong momentum and currently testing September low. The price looks will breakout below the level soon and target $1,390 – $1,430 area. There is the bottom of the channel to watch too for a possible reversal. At the current time, traders could use $1,480 – $1,500 as the level to look for short positions.

Daily Chart

The trend on the gold daily chart is bearish and inside the channel. The price expected to continue its bearish movement inside the channel and traders might want to avoid long positions for now. We expect gold to reach $1,390 – $1,430 area in the long-term where traders could look for long positions there.

Trade Plan

Bullish trade – A long positions from $1,390- $1,430 is the option, traders could take when there is a bullish reaction.

Bearish trade – Short positions need to wait for the price to move upward and test $1,480 – $1,500 area for now. Shorting when the price turns upward and place stop order above previous swing high is another option traders could take too.