Gold: Time to cool off?
In these times of uncertainty over trade, that safe haven, Gold, has been proving popular with investors. Gold has been doing very well in the last few days and was able to make up some ground. With a jump above the US$1400 mark, many investors have already fallen into euphoria, seeing the old highs from 2011 may be almost US$1900, within reach again.
This enthusiasm could be a little premature. Although gold was able to form a new significant high on Tuesday, there were no follow-up purchases on the following day. The market traded temporarily below the critical zone at US$1415 in yesterday’s trading.
If the bulls can defend this level the market could show higher prices. The next significant structural level on the way up that could show resistance to the market is in the US$1450 area. If the market also climbs above this hurdle, a more distant structural area at US$1540 could offer resistance to the market.
However, if the market bounces down at the US$1415 hurdle and the structural line at US$1393 cannot support the market, there may be support in the US$1345 area. If this zone is too weak as well, two more areas of possible support at around US$1288 and US$1241 could help the bulls. If the market heads further down the picture would cloud over.
The MACD oscillator is in positive territory and wide open. The histogram tracks the price movement correctly.
GOLD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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