The precious metal will face a test of its value as low trading volumes develop in the coming days.
Precious Metal Exhibiting Signs of Tension
Gold continues to exhibit all the signs of an asset for which investors are searching for a meaningful equilibrium, but haven’t found a resting place.
The precious metal was able to climb from low water marks in the aftermath of the U.S Federal Reserve’s interest rate hike. The price of Gold is near 1257.00 U.S Dollars an ounce as of this morning.
Upward Momentum in Question
However, the precious metal has not been able to resume its upward momentum in full and has found tough resistance around 1263.00 U.S Dollars an ounce.
The value of Gold has mirrored the range of the Euro against the U.S Dollar. While it showed some flashes of brilliance over the past few months and looked like it might break out higher, in fact, the precious metal has now found strong headwinds.
Suspicion More Pressure to Come
As the Christmas holiday season rapidly approaches, trading volumes will decrease later this week, which will open the door to further volatility.
And Gold’s recent weakness has raised the suspicion more tests of support will occur with the possibility of 1245.00 U.S Dollars an ounce becoming a focus for sellers.
In the short term, we believe Gold may be negative. In the mid-term and long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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