Trading | 3 months ago
Gold is trading below the $19,000 price level as a result of the price pressure build up generated due to the mixed United States non-farm payrolls data released in the last week. Currently the gold is down by 0.40% against the US dollar, due to the price pressures which is providing a new meaningful opportunity to take a long position in the gold.
A much-needed pullback in the price of gold over the last few days is an indication of a major breakout in the next few days. Bears are trying to push gold to breakdown the support level at $1901, however they have partially succeeded and now the gold is trading at $1883. If bulls are able to sustain this price pressure and resume the price to $1,901 level, then the gold price may increase to the resistance levels at $1,933.
Cryptocurrency market has surged to record heights in this year. Many investors see Bitcoin, Ethereum or other digital currencies as an alternative hedge of gold. As a result, gold is not getting as much attention of the high-net-worth individuals and domestic institutional investors as it used to get prior to the crypto currency surge. Gold is already trading near multiyear high but the positive moves in the bond yields is pushing the gold back.
The long-term technical outlook for gold is bullish but the bullish momentum has to testify its strength when the price reaches at the resistance level. Currently gold is trading near the resistance level of $1,901. Gold price has tested the resistance level at $1,901 multiple times but it looks like gold will experience major pullback at this resistance level. One must look for buying opportunities in gold at this major pullback.
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