Gold Hits a Wall and Turns Lower

Gold fell on Monday as it ran into strong resistance which produced a wave of selling. The precious metal is now near important support, but Gold’s volatility may continue the next couple of days if it reacts to fast conditions in forex.

Strong Resistance Batters Gold

Gold seemed to hit a wall on Monday around the 1305.00 U.S Dollars an ounce level and sunk lower.

The question is whether after resistance proved strong if it will be maintained or if the precious metal’s downward turn will reverse once again? Gold is now near 1290.00 U.S Dollars an ounce an appears to be struggling.

Gold’s Reversals Have Dominated

Gold achieved highs in early September as weakness in the U.S Dollar became prevalent, but as a reversal has taken place in forex the past month, the precious metal has also seen selling.

The last two weeks have proven interesting for Gold, after being taken to fresh lows nearly ten days ago – the commodity had put in steady gains until yesterday.

Dynamic Short-Term Trading Likely

The next few days in forex are likely to prove dynamic as the Bank of England’s coming monetary policy is deciphered. However, range trading may be the norm.

Gold has proven over the short-term that it has not wanted to retrace back to low water marks. Traders will have to be patient in the near term to allow their positions to work. Gold may see some additional pressure, but investors need to be alert for sudden reversals too.

In the short term, we believe Gold may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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