Gold stuck between rock and hard place
Despite the Fed dismissing speculation that it will ease off rate hikes, investors are continuing to keep gold bid above the pivotal level of $1700, after it managed to break above its long-term bearish trend line last week.
So far, it appears as though the bears are losing control of price action. The bulls have reclaimed a few important levels including last year's low at $1676 and then $1700. For as long as these levels hold, they will be keen to buy dips at short-term support levels that you might not be able to see on this daily time frame.
The next technical area that the bulls need to reclaim is between $1727 to $1735, which had acted as strong resistance in early September. If they can do that successfully, then potentially we could be talking about $1800 next.
The bears meanwhile may have lost the battle but are still winning the war. In order to reassert their authority, the $1700 level must be taken back.
So, it is one level to the next level when it comes to trading gold, as clearly price action is no longer one-sided...
So far, it appears as though the bears are losing control of price action. The bulls have reclaimed a few important levels including last year's low at $1676 and then $1700. For as long as these levels hold, they will be keen to buy dips at short-term support levels that you might not be able to see on this daily time frame.
The next technical area that the bulls need to reclaim is between $1727 to $1735, which had acted as strong resistance in early September. If they can do that successfully, then potentially we could be talking about $1800 next.
The bears meanwhile may have lost the battle but are still winning the war. In order to reassert their authority, the $1700 level must be taken back.
So, it is one level to the next level when it comes to trading gold, as clearly price action is no longer one-sided...
Penafian
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