Trading Conditions for Gold Tough and Volatile

Gold continues to experience tough trading conditions. The precious metal saw a rapid rise on Friday and early gains this morning but has reversed lower the past couple of hours. The strong U.S Dollar is creating headwinds for Gold.

Tough Short-Term Circumstances for Gold

Gold has seen a large wave of volatility since Friday’s U.S jobs numbers were published. The precious metal is near 1285.00 U.S Dollars an ounce after reversing from lows.

However, the short-term circumstances in Gold remain fast, and traders should be careful. Support for the precious metal may be around 1273.00 U.S Dollars an ounce.

Strong U.S. Dollar Influencing Gold

The mid-term has created a massive amount of bedlam for the precious metal, as its gains since early July continue to come under pressure after attaining highs above 1340.00 U.S Dollars an ounce less than one month ago.

The U.S Dollar remains an important trigger for Gold and its rise in value the past few weeks has certainly created headwinds for the commodity.

Resistance and Reversals in Gold

Speculative forces are likely to remain significant in the coming days for the precious metal.

Gold is likely to see a consistent test of ranges. The precious metal may face resistance around 1288.00 U.S Dollars an ounce and traders will be tempted to focus on reversals.

In the short term, we believe Gold may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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