Tactics and Analysis, July 19, 2017 – Gold Provides Trading Opportunities

Gold remains a dynamic market. The precious metal has climbed off lows from last week on the notion the U.S Federal Reserve will remain on the sidelines regarding another interest rate hike. However, inflation short falls are continuing to create an up and down market.

Gold’s Short Term Climb Higher

Gold has experienced a vast amount of volatility since late June. The precious metal this morning is near 1240.00 U.S Dollars, which is an important juncture.

The sudden realization by investors that the U.S Federal Reserve may hold off on increasing interest rates in the Mid-Term have provided a kick start for the Gold market.

If Gold continues to climb higher, an important resistance level could develop around 1248.00 U.S Dollars an ounce. If Gold falls on profit taking the 1230.00 mark should be watched closely as support.

Dangers of Gold’s Elevator Ride

Gold’s mid-term trading results show an up and down elevator ride, as speculators have had their sentiment tested consistently. Central banks are having an effect, and speculation regarding inflation has also had an influence for the precious metal.

Last week’s Consumer Price Index data from the U.S and this week’s U.K inflation results came in below expectations – this should hamper the price of Gold. However, the belief U.S Fed is going to hold off on increasing interest rates in the States has created upwards momentum – and a dynamic trading environment which may continue to prevail as speculators play both sides of the coin.

A Range Full of Tests

A look at a long-term chart for Gold shows that plenty of tests have taken place the past few months.

While the precious metal began a climb in value in December of 2016, trading sentiment appear to remain fragile and the lack of conviction among investors has led to many trading opportunities.

The 1240.00 U.S Dollars an ounce range is important for Gold and it will certainly face fast market conditions with the European Central Bank meeting in the cards tomorrow.

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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