Gold provided a flourish of bullish momentum yesterday as it broke through important resistance and surged to mid-term highs leaving speculators with a decision to make today.
Gold broke through the 1830.00 resistance barrier with a razor-sharp thrust yesterday and quickly challenged the 1870.00 price level within a two-hour span. Speculators of the precious metal may have confused gold with a cryptocurrency for a brief moment. As of this morning, gold is traversing near the 1853.00 ratio, and if the commodity stays above the 1850.00 to 1845.00 short-term support levels, traders may believe another leg up is lurking.
Technical traders may be nervous as gold moves in its current range because it is slightly below the higher realms of its June 2021 values. From the 17th of May until the 14th of June, gold essentially traded within the 1855.00 to 1910.00 marks with some outliers occasionally. Some speculative traders who would like to jump on the trend higher may want to see the 1870.00 to 1880.00 values proven vulnerable.
However, for traders lucky enough to have caught the move upwards yesterday and still holding positions, there is likely a question about when they should cash out. If a trader bought gold near the 1828.00 mark and is still holding on because they believe it can move higher, they should certainly use trailing stop loss orders to protect profits. Current short-term support may prove to be rather volatile, but if the nearby marks prove adequate aiming for resistance levels near the 1858.00 to 1860.00 realms is not farfetched. Solid profits should always be considered enough for most traders and cashing them out is wise.
Skeptical traders who believe gold is still within its long-term trading range and will suffer a reversal lower should be careful. While it is certain moves downward in gold are bound to be demonstrated, the question where another bounce higher may occur should be on the back of all traders’ minds. The lower support level of 1832.00 should be monitored if extremely fast conditions continue to be demonstrated today.
However, if nervous sentiment continues to be demonstrated in global markets and inflation chatter continues to make its way into sentiment today, there is reason to suspect near term that the commodity may win over more buyers. If gold starts to challenge nearby resistance and breaks through the 1860.00 level with relative ease, speculators may target higher marks like the 1870.00 and 1880.00 values. Traders who achieve profitable outcomes are advised to cash out winning positions also, before they vanish into thin air in turbulent market conditions.
Gold Short-Term Outlook
Current Resistance: 1859.00
Current Support: 1844.00
High Target: 1880.00
Low Target: 1832.00