Tactics and Analysis, August 8, 2017 – Gold Has Gone into Holding Pattern
Gold suffered slight losses on Friday as the U.S Dollar got stronger. However, yesterday’s trading proved speculative elements remain strong and some traders may be positioning themselves with buying positions with the belief Gold has higher ground to attain.
After Downturn Gold Holds Value
Gold went into a holding pattern on Monday, after dropping upon the rise in value of the U.S Dollar on Friday.
Yesterday’s trading for the precious metal showed investors have not given up on their ambitions for another rise in value from Gold.
If Gold continues to consolidate and begins to test values above the 1263.00 U.S Dollars an ounce level, it could signal further room to climb in the short-term.
Gold Continues to be Tested
The mid-term has produced a resounding test of Gold’s value. Support for the precious metal continues to be around 1253.00 U.S. Dollars an ounce. Gold has seen drops in value and sudden surges upwards the past couple of months.
Investors will get two pieces of important inflation data from the U.S on Thursday and Friday, and if Gold continues to hold onto its short-term value it will bring about a huge test at the end of this week.
Looking for Upside near Support
Gold’s speculative nature certainly remains strong. A look at a long-term chart shows the recent attempts from market participants to drive the price of the precious metal higher and their failure to maintain gains.
However, this time may prove different. Gold may have some room to venture higher if the U.S Dollar continues to weaken. The Federal Reserve has signaled it will not raise interest rates in the short-term, and this may create additional speculative buying for Gold.
In the short term, we believe Gold may be positive. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
This article was originally posted on FX Empire
