Gold finds support in downchannel


Gold (XAUUSD) is starting to behave a little strangely, and seems to be finding buyers despite being so obviously in a descending channel (which currently has its base around $1260). The spectacle of more North Korean missile-based shenanigans will be adding to support but buying Gold because of this seems like something of a Pavlovian reaction. Gold has become remarkably stable of late, and while it’s difficult to have much faith in the precious metal as an investment opportunity it’s fair to say that you aren’t going to lose too much money by being long. Rather perversely, the risk with slow directional movements in any investment product is that reversals can induce a state of market panic that can undo the work of weeks over a considerably shorter timeframe. At the moment we’d continue trading the $1260-$1290 range but a close outside the channel would give us reason to reassess the risk, as Stop Loss buying would undoubtedly bring a pause to the downtrend.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more