30-mins GOLD: High Demand is Driving the Price Higher

6 Dis

Since early Novermber, Gold was being dominated by sellers, as at one point it dropped with $260. Then we started seeing some recovery attempts and the precious metal reached $2725. Towards the end of November however, sellers regained control and we saw the price sliding back down, this time reaching a higher bottom. For the past few hours today we registered almost a $30 increase, which indicates that buyers find Gold cheap at $2620. Another indication for a possible momentum reversal is that the price broke above the critical 61.2% Fibonacci retracement. This has been a historical signal that such price move is not a correction, but a reversal instead. Buyers who wish to speculate with the current upward momentum, might achieve better risk to reward on their trades, by targeting a lower entry at around $2630.