Gold Testing Traders Courage, Holds Near 12-Month High

Gold remains in fast trading conditions. A weak U.S Dollar and risk adverse traders because of the North Korean tensions are having an impact on the precious metal. Traders need risk management if they want to trade Gold in the short-term.

Short Term Risk Management Needed

Gold’s recent trading suggests that volatility will continue to be seen in the commodity, and traders need to practice good risk management.

The value of the precious metal is near 1340.00 U.S Dollars an ounce, which is near important resistance.

And while some speculators may be courageous enough to seek reversals downward, the old saying “you should not stand in front of a moving train” could prove wise.

Gold’s and Safe-Haven Traders

Gold’s jump in value has happened on a weaker U.S Dollar and an influx of safe-haven traders who are worried about North Korean tensions.

The precious metal jumped in price before the weekend and gapped higher on its opening yesterday. Meaning traders will likely try to test its value the next couple of days with speculative positions.

Volatility to Continue for Gold

Several members of the Federal Reserve will be speaking today, which could influence the U.S Dollar, and thus have a knock-on effect with Gold. The European Central Bank will also conduct their monetary policy Press Conference on Thursday.

Gold is likely to remain volatile in the next few days. Its range may be technically driven, but fundamental concerns like North Korea and the value of the U.S Dollar will create impacts too.

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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