Our free forex signals service trade today is a buy order on the gold. The metal looks positive amid broader risk aversion.
The gold price moves sideways right above the uptrend support. The XAU/USD is trading at 1,906 at the time of writing. The yellow metal could test the immediate support levels in the short term before developing a new leg higher. As you already know, gold is used as a safe haven, so XAU/USD could climb higher after registering temporary declines. In the short term, the price of gold retreated a little also because the DXY rallied.
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Fundamentally, the geopolitical tensions make XAU/USD very attractive for buyers. So technically, the bias remains bullish despite the current retreat. That’s why I’m still looking for new long opportunities.
Chicago PMI 62.1 expected
Today, the US data could bring some action on the price of gold. Chicago PMI may drop from 65.2 to 62.1 points. In addition, the Prelim Wholesale Inventories may report a 1.3% growth, while the Goods Trade Balance could be reported at -99.6B.
From the technical point of view, the XAU/USD could develop a new leg higher as long as it stays above the uptrend line. Conversely, only a valid breakdown below this dynamic support and a new lower low could announce a deeper drop.
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Free forex signals – Buy gold at 1,928.82
Free forex signals entry price and takes profit
Order Type: BUY STOP
Entry price: 1,928.82
Stop Loss: 1,876.44
My Risk: 1%
Risk / Reward Ratio: 1:1.55
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