The precious metal gained in fast conditions yesterday and its volatility is likely to continue over the next two trading days.
Resistance Collapses as Gold Gains
Gold has broken through short-term resistance and is testing important highs not seen since early September 2017.
The precious metal is trading near 1358.00 U.S an ounce with fast conditions. Risk management will be an essential tool for traders today and tomorrow.
Strong Sentiment Widespread in Commodities
Gold is just one of the many commodities which have rocketed in value the past month. Speculation has certainly grown and bullish sentiment is widespread.
However, trading is seldom a one-way avenue so market participants need to be careful even if they are on the right side of price momentum.
Gold Entering a Testing Zone
A look at a long-term chart shows the precious metal is entering a definite testing zone.
The next couple of days will prove important, and if Gold sustains its value it might increase the likelihood speculative forces will look for more upside. The volatility seen in Gold the past two days has proven strong and it will continue.
In the short term, we believe Gold may be positive. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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