Gold Pressing Up Against Support

Gold has continued to trade under pressure in the short-term as traders have been attracted to global equity markets. Today’s speech by President Donald Trump, however, could make investors nervous, and tomorrow the Federal Reserve releases its Monetary Policy Statement.

Gold Sinking as Equities Gain

Gold has come under enormous pressure the past few trading sessions as a rush into global equities has helped propel selling in the commodity.

Gold is near 1307.00 U.S Dollars an ounce and the 1300.00 mark looks to be an important support. If the support level does not hold Gold could see further pressure, as speculative positions get triggered.

Trump is a Potential Risk Event

Because of the Federal Reserve’s Monetary Policy Statement tomorrow, the precious metal could see additional volatility as traders prepare ahead of the U.S central bank’s outlook.

And President Trump’s speech today should also be watched for potential impetus if he happens to make traders nervous.

Mixed Views on Gold Direction

Gold’s steady rise in value since early July is now being tested. And if optimistic sentiment continues to build in global equities, support may see more tests.

However, traders with a longer view of the Gold market may continue to try and withstand what appears to momentary storms, particularly if they believe the U.S Dollar will remain within a weakened state over the mid-term.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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