gold down

Speculators Eyeing Downside Action for Gold

Speculators may be looking for additional downside action near term.

Key Test of Support Developing in Gold Today

Gold has come under pressure since the middle of last week and is now testing vital support ratios near the 1330.00 U.S Dollars per ounce level. The precious metal has stumbled as the Dollar has gained in forex against the other major currencies.

Gold 4H Chart
Gold 4H Chart

Gold’s failure to break key resistance around the 1350.00 mark proved tempting for speculators, who added fuel to the commodity’s downward draft and became sellers.

Gold Bugs on the Sideline as Dollar Strengthens

Gold, however, does continue to show important support around 1323.00 U.S Dollars per ounce and if the commodity declines further, traders might look for reversals. But patience will be an important piece of the puzzle for market participants.

Gold Daily Chart
Gold Daily Chart

Forex is clearly having an impact on Gold, and the recent weakness which has developed for the Euro and Pound may keep ‘gold bugs’ on the sidelines temporarily.

In the short term, we believe Gold could be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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Yaron Mazor

Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology and education. Ten years ago, Yaron sold all of his businesses and became a trader. Yaron started an education provider that taught thousands of people worldwide how to trade. Since then, he has traded every single day across every imaginable financial instrument Organic Trading System (OTS) is an unprecedented, new paradigm of trading technique, developed by Yaron Mazor. The trading system utilizes a combination of essential resources of market data (Fundamental, market participant sentiment and the basic concepts of trends), which are harmonically coordinated, in order to enable a relatively fast, simple and easy way to decide which side of the market to be trading from – the Buy side or the Sell side.