Shorts on Gold Favored As Fears of “Brexit” Ease

Early on in the week, several opinion polls have shown that the “Remain” camp is recovering some momentum ahead of the “Brexit” referendum, to be held on Thursday. Investors’ appetite for risk is soaring thanks to abating worries on the possibility of Britain opting to leave the EU. Hence, safe-haven assets such as gold seems less attractive. The losses in the US dollar due to dovish comments from the Fed’s Bullard on Friday failed to support gold prices. On the hourly chart, Gold opened this week with a large gap-down and is currently retreating, after failing to break the resistance of 1299.70 on friday. The stochastics chart shows that the precious metal is bobbing up and down around the threshold of oversold territory, indicating that a bounce back may happen after some more declines in the short-term.

Trade suggestion

Sell limit at 1280.64, Stop loss at 1283.77, Take profit at 1276.15

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