Gold has climbed again and is testing the mettle of traders as short-term reversals remain commonplace for the precious metal. Gold remains a tough trade and technically driven by speculators.
Gold’s Twists Proving Tough
Gold has gained the past day after reversing from strong headwinds last week. The precious metal is trading near 1310.00 U.S Dollars an ounce.
Gold has proved challenging for short-term traders who have been looking to catch a trend, and instead technical traders have had an advantage as reversals have produced sharp twists.
Support and Resistance Marks in Sight
Gold may continue to remain speculative short-term and under the influence of traders who believe the precious metal may not be ready for a recovery to highs seen in early September.
The 1295.00 level remains an important support for Gold and the 1315.00 juncture could prove to be important resistance.
Gold Tests Likely to Continue
Although we continue to like Gold and remain impressed by its mid-term trend, the precious metal may continue to find tests in the near term.
Gold could continue to be rattled by investors who are buying riskier assets as global equity Indexes have climbed. And strong equities may continue to create some pressure for Gold traders.
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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