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Short term trade idea in Gold

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,

 

Gold needs to hold $1300. If that breaks then there could be further selling pressure. $1306 was hit today so it is getting close. An interesting battle for Gold at the $1300 level. It all depends on the risk appetite around the world, political stability and economic news that is released. 

 

Interesting times for Gold short term. 

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Hi Traders,

 

XAUUSD price action has retraced bellow 38.2% FIB (1321.6$) and near 50.0% FIB (1306.6$) area, we might see buy opportunity near 1301.5 $ area @ 161.8% Fibonacci-extension of the corrective strcutrure.

Gold has losted 52.3$ in the last 12 days with an average of -4.358$ per day since the 25/01/2018 where it was traded @ 1370.4 $,  

The big palyers will be back soon to the market.

 

Never risk more than 1to 3% per trade,

Best Regards

Omar

 

Gold_20180210_17.15.png

 

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HI   Gold is still trapped in the ascending triangle pattern, while a break to the upside is more likely from the TA perspective gold is of course susceptible to sudden moves in response to geopolitical events. 

 

If able to clear this long term resistance there is a lot of space to the upside.

 

Spot Gold_20180502_19.19.png

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I agree with you that Gold is susceptible to sudden moves in response to geopolitical events. Does the US, UK and France attack in Syria count? Does Trump and North Korea rhetoric count? Do the tensions between UK and Russia count? Do the Middle East tensions count? I think historically Gold has been susceptible to sudden moves in response to geopolitical events but there is a new asset in town which is where the capital is flowing in such times. The Big B. I am not suggesting this will last but this is the current trend.

 

There is only space to the upside if capital flows to Gold. These institutions and governments have to feel that in such times of difficulty there is no other asset which the capital can flow to which is better than Gold. Lets be honest it is large institutions and governments that move the price of Gold. 

 

I can only see upside of around 1000 points to $1400 in the medium term. I suppose a short term play would be to go long Gold for it to hit $1350 levels. Right now it is in a trading range between $1300 - £1350. Then you short it to just below $1320 levels.

 

Rinse and Repeat until it breaks this trading range!

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