Gold has continued to move fast and create bedlam for speculators. The precious metal has faced headwinds this morning and declined in value.
However, the U.S GDP numbers which will be released soon will ignite the broad markets including Gold if there are surprising results.
The last week of trading in the Gold market has been anything but tranquil. The precious metal has been under pressure since yesterday and is near 1340.00 U.S Dollars an ounce. But this level is sure to be tested today and tomorrow.
Broad market sentiment remains fragile and the U.S Dollar finds itself in a precarious position as it continues to be tested in forex. U.S Gross Domestic Product data which will be released shortly will also ignite volatility across the boards if there is a surprising result.
A long-term chart of Gold clearly shows it has failed three different times to break resistance near 1355.00 U.S Dollars. And critical support remains intact near the 1313.00 mark.
Gold is nearly certain to trade inversely compared to the U.S Dollar these next two days. If the U.S growth numbers are weaker than expected from the States it could help the precious metal.
In the short term, we believe the Gold could be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.