Never miss a story from Michael Boutros

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Michael Boutros

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Gold has continued to trade within a 1.7% range since the start of the year with price holding near seven-month highs. We’re looking for a break of the weekly opening-range for guidance with the broader outlook constructive while above 1265. These are the updated targets and invalidation levels that matter on the XAU/USD charts. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide

Gold Daily Price Chart (XAU/USD)

Gold Daily Price Chart - XAU/USD

Technical Outlook: In my latest Gold Weekly Technical Outlook we noted that an outside-day reversal off the early-month high left the advance vulnerable heading into the yearly open. Price has continued to hold within the confines of that day’s range - which now governs the entire monthly opening-range.

Why does the average trader lose? Avoid these Mistakes in your trading

Gold 240min Price Chart (XAU/USD)

Gold 240min Price Chart - XAU/USD

Notes: A closer look at price action highlights a near-term consolidation since the start of the year – the trade remains constructive while above 1266 with near-term support seen at the 100% extension of the decline at 1273- both areas of interest of possible exhaustion / long-entries IF reached. Key resistance remains with the 2018 yearly open at 1302 with a breach / close above needed to keep the focus towards subsequent targets at the 78.6% retracement at 1321.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: The broader focus is higher in gold, but the immediate advance remains vulnerable sub-1302. From a trading standpoint, we’ll continue to favor fading weakness while above 1266 targeting a topside breach of this range.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Gold Trader Sentiment

Gold Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-long Gold - the ratio stands at +2.27 (69.4% of traders are long) – bearishreading
  • Long positions are0.4% lower than yesterday and 3.5% lower from last week
  • Short positions are 6.5% higher than yesterday and 20.6% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Gold price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in Gold retail positioning are impacting trend- Learn more about sentiment!


Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex