Last December gold was knocked down, reaching $1050, but quickly recovered and pinned new highs at
$1282 in February and $1305 in April.
From technical viewpoint the February rally significantly pushed the price up and
set bears calm, as they have been at large for the last two and a half years.
But the fundamental aspect caught traders in a landslide, facing a silhouette
of bewilderment, as US economy strongly blows the wind of change. Fed’s rate
hike definitely sube la adrenalina.
The sense of a suspense shivered and shadowed. So now gold walks the empty
street on the boulevard of broken dreams. The restless stream is now caught up
within the sound of silence.
Currently gold prices are under huge selling pressure during the last six sessions.
The strong support located at the 55-day EMA was conquered and gold split the
doubts that for shortly could move up, even hit intraday high at $1234.30. In
elevated perspective, the resistance is planted in $1250.00 level and a vision of
softly creeping breakout could lead the price towards $1265.00. A step back is
very likely to support-turned-resistance at $1243.00.The short term rally could
bring some small profits, but gold will loudly break the sound of silence in the long term run.
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