As we look at gold today, we can see price starting to form a range after a wild few days of trade. There have been some amazing moves on gold as traders looked to the metal as a hedge. Last Thursday’s surge up to 1974.48 capped off a well-developed rally that started back in January. As the crisis has developed and then started to unfold, buyers piled into gold. But Thursday was a mixed bag as risk recovered, sending gold back down to 1903, and setting off a solid bull trap.
This set up a strong gap to start the week as spot gold began trading from 1916 today. Trade from the open hasn’t been confident, and we’re still watching price decline slowly, which leads us to today’s chart.
We can see two clear areas of support and resistance after today’s gap, now that the dust has settled from last week and this morning’s open. If we see a break and close above resistance, we will be looking for further higher prices. Otherwise, a break below support could mean that we might see a new move back to the second slower trendline.
Uncertainty presents volatility
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