Quick Update on Gold’s Sell Signal, US-China Trade War Plays
Earlier today, we opened a forex trading signal in gold to sell it below $1,311 with a stop loss above $1,314 and take profit around $1,307.875. It looks like the precious metal may face a sell-off on the back of a stronger dollar.
US-China Trade War
Investors are moving their funds into the dollar as concerns grew that U.S.-China talks this week would not fix a crack over trade between the world’s largest economies.
Both nations are trying to come up with a deal ahead of the March 1 deadline. After this, the US tariffs on $200 billion worth of Chinese imports are scheduled to expand to 25% from 10%.
As you know, China has more to lose if they fail to keep tariffs on hold. Being the second-biggest gold consumer, the Chinese demand for gold can dip over a slowdown in economic growth. The sentiments are likely to keep gold under selling pressure.
From the technical analysis viewpoint, gold is facing a solid resistance at $1,311 and it’s highly likely to stay bearish below this level. The initial target can be $1,307.50 and 1,302.
Good luck!
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