Gold has extended its slump, now off by more than $230 (-6.5%) from yesterday's record high of $3.5K. Unwinding of "Sell America" trades continue as risk assets rally on Trump's trade optimism.
Key levels to watch
With short-term support broken at $3,342, this level has already turned into resistance.
The next support was at $3,284. This level has just been taken out. Therefore, we could this level turn into resistance in the next few hours.
Untested old resistance at $3,245 is now the next downside objective. Below that $3,200 and then $3,167 (old resistance).
How to trade gold?
Trade gold from level to level, as it unwinds from significantly overbought levels. Could be a while before it starts trending higher again. Equally, given the long-term bullish trend, the bears should be looking to book profit some profit at every potentially key support.
By Fawad Razaqzada, market analyst with FOREX.com
Key levels to watch
With short-term support broken at $3,342, this level has already turned into resistance.
The next support was at $3,284. This level has just been taken out. Therefore, we could this level turn into resistance in the next few hours.
Untested old resistance at $3,245 is now the next downside objective. Below that $3,200 and then $3,167 (old resistance).
How to trade gold?
Trade gold from level to level, as it unwinds from significantly overbought levels. Could be a while before it starts trending higher again. Equally, given the long-term bullish trend, the bears should be looking to book profit some profit at every potentially key support.
By Fawad Razaqzada, market analyst with FOREX.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.