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Will there be a Gold sell off?

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Will there be a Gold sell off?

The whole eyes of the market is currently on Gold. And why is that? Because Gold is currently at an all-time high.

The current spike in the price of Gold has attracted many people and because of its recent rapid growth – investors and also people who have never invested before. A situation that could be potentially be very dangerous for both of those groups.

 Gold is currently at a critical area now. It is almost at the $2.000 mark. This could work as a strong resistance based on a psychological standpoint, as prices could be rejected at that point.
The last time the market experienced a similar scenario was in 2008 and 2014 when the price reacted to $1.000 mark.

We are not exactly saying that prices will reverse now because it is at $2.000, but the possibility that it could reverse should be taken seriously.

Potential trading advice: it is advisable for traders to stay off the market and let the scenario play out.


As prices has breached historical highs, it is very important that the price manages to stay there. The risks are that even though the price has made the breakout, if the higher prices are not accepted as “fair value prices” then prices could break and fall sharply down.

Trading strategies.

  1. We could wait till higher prices got accepted – which means that price started to rotate above the $2.000 mark. Before entering the market.
  2. Wait till prices drop to buy cheaper.

 How deep do prices need to drop in order to enter the market?

The best place to jump in a long trade is around 1710 mark.

And why is that?

Because If you use a volume indicator and look at how the volumes were distributed throughout the last couple of months, then you will see that a lot of trading positions got placed around the 1710 area. In those areas, buyers were entering their long positions slowly. The big institutions were getting ready for a big push.

When they slowly accumulated their long positions, they started an aggressive buying activity. This activity snowballed, with traders starting to join in the new buying, and the price started to rise sharply.

Now, if prices drops back into the 1710 zone again, it is possible that big institutions will become active again. This zone is particularly important because a lot of positions were taken there.

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Forex Trading

Gold aiming for new highs.

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Gold is ready to take out a powerful resistance at $1862, which is the intersection of the previous day high and Fibonacci 38.3% one-day.

Up next, a dense cluster of major resistance levels is put up around $1862, where the Fibonacci 23.7% one-week, SMA100 four-hour and SMA100 one-hour coincide.

The buyers will then target the SMA50 one-day at $1870.

Meanwhile, a lack of healthy support levels makes gold look vulnerable, with an immediate cushion seen around $1848, which is the convergence SMA100 and 50 one-hour and SMA10 four-hour.

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Forex Trading

XAUUSD eyeing upside above $1916

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Risk sentiments joins the precious metal’s ability to stay beyond 50-day Simple moving average to attack the 100-day Simple moving average level of usd1,904.54. However, any further upside will eye for a multi-day-old resistance line around usd1,917.

Should gold buyers manage to cross usd1,918 on a daily closing basis, November’s high near usd1,965/67 will be in the spotlight.

Meanwhile, a downside break of 50-day simple moving average, at usd1,871 now, will attack an upward sloping trend line from November 30, currently around usd1,843.

If at all the commodity sellers dominate past-usd1,843, the monthly low near usd1,776 may return to the charts

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Forex Trading

Gold sees heavy loss.

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The precious metal picks up bids around usd1,840, up 0.21% intraday, during early Thursday. The yellow metal marked the heaviest losses since November 24 the previous day but 200- hourly moving average triggered the much-awaited bounce.

The U-turn gains support from the receding strength of negative monthly average convergence divergence signals to suggest further upside towards 100-hourly moving average , at usd1,852 now.

However, a downward sloping trend line from Tuesday, near usd1,857 now, will challenge gold buyers ahead of highlighting the recent top surrounding usd1,876 on their radars.

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