Gold Meets Up Against Resistance

Gold reached new highs on Tuesday, but then came under pressure as speculators began to sell. It appears the precious metal may face headwinds in the short-term with the belief it gained too quickly the past few trading sessions.

Dangerous Day of Trading for Gold

Gold has had a dangerous run upwards and is now under pressure from speculators.

After reaching nearly 1330.00 U.S Dollars an ounce yesterday at the height of its buying climax, Gold was put under pressure and has continued to fight headwinds.

The precious metal is battling for position near 1310.00 U.S Dollars an ounce but appears to still be facing selling pressure and the 1300.00 U.S Dollars support level may get tested.

A Climb Since Early July

Gold has enjoyed a solid surge upwards since early July, this has occurred as the U.S Dollar has weakened and the Euro has grown stronger.

Yesterday’s climatic buying of the Euro against the U.S Dollar hit resistance too, and Gold speculators reacted quickly with selling as a response.

Short-Term Selling Opportunity

Gold may prove to remain dangerous this week. Geopolitical concerns remain a risk because of the North Korea situation, but investors seem to have pushed those worries to the side for the moment.

A long-term perspective of Gold shows its trend has been bullish since December of 2016. However, traders may attempt to sell the precious metal because they believe it may be over-valued in the coming days.

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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