the daily chartist

Gold losing its shine further

published 1 year ago

 Precious metals are having a hard time recently with fundamentals shifting to a more tightening FED policy and overall USD strength. Gold has lost a lot of its value from 1300 and the Bearish flag that was played out, breaching every Fibo level and dropping lower to as much as 1235.943. The precious metal is finding some support near the 1238 handle (green zone), but is quickly sold at the red zone circa 1245 - 1248. Quite a lot of fake breakouts on these levels, so my advice is to wait out and see what clear direction the metal will take. As in EUR/USD, Gold also is under the shadow of the Death Cross and is nowhere near any tests of the MA50 or the MA200. There was an attempt on 09.07.2018 to test the 23.6 Fibo, but it didn't even land fully there. It was sold out rapidly, movement stalled, Bulls took control again and the price continued to fall further. Gold has reached the bottom level from 12.12.2017 where a new buying period has begun, so it is important to see for any indication that this is going to happen again before placing any longs. If you are aggressive you can buy now with an SL under the 0.0 level. Still be careful and don't rush to emotionally to any sharp movements. Gold has proven that in big sudden dumps or pumps before you even enter the price has already returned to normal levels and you are going to stay with a long on the top or a short on the bottom.