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Tactics and Analysis, June 14, 2017 – Gold Might Catch Fire Today

By:
Yaron Mazor
Published: Jun 14, 2017, 09:26 UTC

Traders considering a short-term gold position today, should consider their ability to withstand volatility. The precious metal has seen a solid range at

Tactics and Analysis, June 14, 2017 – Gold Might Catch Fire Today

Traders considering a short-term gold position today, should consider their ability to withstand volatility.

The precious metal has seen a solid range at first glance the past week, but has also seen whipsaw movements as the commodity has move swiftly from support to resistance and back again. Presently Gold appears to have some short-term support around 1263.00 U.S Dollars and its resistance could be said to be around the 1273.00 level.

Gold 1H Chart
Gold 1H Chart

The wide range should serve as a sign of caution for traders tempted to enter precious metal’s marketplace today. Because the U.S Federal Reserve is standing in line, and ready to make its interest rate decision and Monetary Policy known later today.

An Avalanche of Volatility

Volatility is certain to become an avalanche regarding price movements for Gold in the coming hours. Traders will need to be ready with proper risk management and deep pockets to withstand what will become turbulent conditions.

Gold 4H Chart
Gold 4H Chart

A look at the mid-term range for Gold highlights the peaks and valleys the commodity has seen recently. Gold will offer plenty of opportunities to profit today, but for traders caught in a market going the wrong direction – it can also spell disaster.

Recent Interest Rate History & Gold

The Federal Reserve’s Monetary Policy Statement and its Press Conference with Janet Yellen at the helm will be the focal point for the broad markets and Gold.

It is likely the Fed will increase their interest rate by a quarter of a point, but it is also likely most investors have factored the higher interest rate into the markets already. The bigger question is what the Fed’s economic outlook and time parameters will be regarding its next interest rate hike.

Gold Daily Chart
Gold Daily Chart

Many investors have been speculating that the Fed will raise interest rates twice more during the calendar year of 2017, including a hike today. Interestingly enough, the last two times the U.S central bank has hiked interest rates, the value of Gold has soared. However, traders who considering a speculative ‘buying’ position should be ready for a roller coaster like ride.

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

Gold will become a fast market today. The U.S Federal Reserve is set to announce their interest rate decision and Monetary Policy Statement. The outlook given by the Fed today will impact Gold and the broad markets. We expect volatile conditions to increase substantially as the day progresses.

Yaron Mazor is a senior analyst at SuperTraderTV.

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About the Author

Yaron Mazorcontributor

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.

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