Gold Sustains Momentum and is Alluring

Gold has sustained its momentum which began to grow last week and has not given back its gains. The precious metal is near 1294.00 U.S Dollars an ounce and is challenging resistance. Traders may believe Gold has a chance to gain additional value.

Gold’s Solid Run Challenging Resistance

Gold has put in a solid run upwards the past week and is once again challenging the important 1300.00 U.S Dollars an ounce juncture.

A combination of potentially risk adverse trading and weakness in the U.S Dollar has helped fuel the recent surge. But traders must acknowledge Gold has proven dangerous in the past month with volatile downward reversals.

A Dangerous Mid-Term with Reversals

However, the precious metal’s climb since late last week took place when U.S investors were on holiday, but their return and full market volumes – have not stopped Gold’s momentum upwards.

The price of the precious metal is near 1296.00 U.S Dollars an ounce in early trading, and speculators are certainly staying focused on the commodity.

U.S Dollar & Global Growth Data Key for Gold

If the U.S Dollar continues to display weakness, and global economic growth figures show steady improvement Gold would likely find additional buyers.

The precious metal’s long-term trading environment has been difficult, but traders may be ready to battle resistance which has proven strong in recent months.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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