Good day forex traders and readers.
Welcome to a new segment brought to you by The Forex Koala ! With the recent gold price dropping, many readers have often asked me why is this happening and what can we expect. Hence i decided to start a new gold price forecast segment. With what you have come to expect from our website, we will not tell you what to fish. Rather we will help you understand how to fish so that in time to come, you can be great gold traders yourselves!
Gold Technical Analysis
Looking at the gold price in usd per ounce above, we see the inevitable drop beginning since hitting a high of almost $1800 back in October 2012. If you observed the chart, you would have identified the bearish trend bringing the precious metal lower and lower.
$1550 was a crucial support of sorts as the price of gold plummeted right after breaking through.
Gold is now consolidating in the region of $1380 and there is no reason why it would not test the low of $1360 again. The possibility is there and hence i urge everyone to have your risk management sorted.
Gold Fundamental Analysis
The US dollar is on a bullish run for now and this will continue to exert bearish pressure on gold as it is priced in USD. With the global equities enjoying a bull market, investors are finding gold a pale investment in comparison for now. Therefore the demand is low, adding more bearish pressure. As we all know that the US equities market remains as one of the best performing market, more foreign investors will continue to be attracted to it, buying more US dollars and inevitably raising it’s value.
I expected continue uncertainty and hence would consider averaging down my commitments to the precious metal gold as at such prices, you are already getting a 10% discount off the previous high.
Trade Safely.Have you checked out our membership subscription? Enjoy your own member dashboard with exclusive premium analysis for as low as less than $0.20 a day! Time Limited Promotion 30% OFF. Secure Discounted Rates Now.
Now enhanced with our proprietary Price Action Bias Signals. We think you may be interested in these articles.