Gold Testing Short-Term Support, Hedge Against FOMOWhile the rest of the market ran bullish at the end of the previous week, Gold dipped negative, crossing below the 30-day and 50-day moving averages. Prices are currently trading horizontally in the short term with $16 being a support level that has not been broken, despite several tests since mid April.
Low MACD amplitude swings also correlate to a near-term horizontal move as opposed to any breakthroughs, contrary to many other bullish equities. Further, the volume at the latter half of last week did not see a significantly large increase, also contrary to the FOMO activities of the rest of the market. These realities may correlate to investors of Gold being more interested in a longer term safe haven as opposed to short term swing trading.
Go long at the current support level either as a hedge against a potential market correction or purchase medium term call options as a bet on a steady average rise in Gold prices.
