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Unfortunately the precious metal hasn’t had any near-term catalysts for a rally that would put it in our sell region. Gold is testing a base around 1280, which looks like it could be broken in Asian trade today. 1278 is the 61.8% retracement of the recovery from 1182 lows to 1434 highs, which took place between July and September.
A more aggressive trade could be to sell gold on a daily close below the 1278 level in anticipation of a move down to 1352 which was the mid-October low. However, the best value trade is to sell gold into rallies. A key event for the USD later today will be price action in the US bond market which re-opens today after being shut for Veterans Day. This has potential to move the USD, and in turn gold.
Follow this market on our trading platform
Our Trader Radar watchlist is updated each week with the above market. To find the watchlist:
- Log in to the trading platform.
- In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
- Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.