Tactics and Analysis, June 27, 2017 – Gold’s Needs Perspective

Gold’s sudden collapse in price values yesterday caught the market by surprise. However, the past day has produced stability after the large selloff. Speculative forces will be volatile today, but opportunities exist for Gold traders if they are use risk management wisely.

Frantic Selling and a Recovery in Gold

Gold’s rather frantic trading yesterday caused an absolute storm for the commodity.

Traders who were unlucky enough to be ‘long’ Gold with buying positions yesterday may have suffered a serious setback, while those who were fortunate to have selling positions likely made nice profits. The nosedive in the precious metal caused controversy as traders tried to attribute blame for the rapid decline which took place in literally – a New York minute.

The Gold market remains fast this morning. But look at the precious metal with a perspective via a mid-term chart. Notice that the precious metal’s move does not look as violent and its movement remains within a known range – meaning the market continues to function and opportunities exists.

A Longer View of Gold

Now let’s look at a longer view of Gold, and it becomes clear a rather tight range remains tangible over the past few months. Yes, there has been volatility, but since December of 2016 Gold has achieved profitable results upwards.

Even in the midst of Federal Reserve interest rate hikes, and yesterday’s sudden turn downwards, Gold continues to fight for value near 1250.00 U.S Dollars an ounce early today. While finding someone to blame for yesterday’s price action is interesting, it may not prove to be worthwhile. Because Gold has proven in the past day it is still attracting speculative buying.

Another Dose of Reality for Gold Traders

Now, let’s look at an even longer chart – 9 years’ worth of results. An even more interesting reality becomes clear, Gold has had a very consolidated for nearly three years.

The price of Gold has come off its highs achieved in 2011, but Gold has been able to pick itself off lows and has begun to reassert itself. The global economy continues to have concerns, but economic data has shown signs of improvement and investors are beginning to position themselves for more inflation.

Gold will likely remain a tumultuous market the next couple of days because of yesterday’s rather bizarre circumstances, but opportunities await those with a taste for speculation and solid risk management.

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

Yaron Mazor is a senior analyst at SuperTraderTV.

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