A very interesting day in gold yesterday - again the 20DMA proved resistance and the gold market sold off hard in the afternoon, dragged down in a broad based sell off. However, gold recovered powerfully from support at 1530 despite dollar strength.
This is the fourth time that the 1525-1535 support zone has been tested and held, it is clear that gold is forming a base at this level.
In light of this, we believe our current long position has a very favourable risk reward profile - the downside is limited to 1525 with several hundred points of potential upside.
This is the fourth time that the 1525-1535 support zone has been tested and held, it is clear that gold is forming a base at this level.
In light of this, we believe our current long position has a very favourable risk reward profile - the downside is limited to 1525 with several hundred points of potential upside.