Holiday Gold Tempting but Risky
Gold has recovered from its sudden fall early this week when it lost value alongside the Euro. Gold put in solid gains on Wednesday and again is positioned to test critical resistance, but traders need to take into consideration holiday trading will be in effect today and tomorrow with low volumes which can cause spikes in both directions.
Traders Need to be on Alert for Holiday Spikes
Trading Gold around the holidays, including the U.S Thanksgiving celebration and during Christmas time always carries risk. Traders need to understand thin markets with lower volumes often bring about sudden spikes – downward and upwards.
Your capital is at risk
Gold proved dynamic on late Wednesday as it climbed towards 1290.00 U.S Dollars an ounce.
Precious Metal Proving Robust
Resistance in the precious metal has proven harsh near 1300.00 U.S Dollars and is likely to present hurdles again. Gold’s mid-term trend has challenged all – including new and experienced traders.
Speculators may be tempted to step into Gold. It has shown a robust range the past week, but it has not occurred without pitfalls. The precious metal fell badly early this week, but it has indeed recovered.
A Barometer to Measure Gold’s Prospects
If Gold traders are looking for a barometer today and on Friday, the Euro may be an interesting place to glance.
The Euro has shown an ability to recover also since its losses early this week. And if the Euro maintains an upwards trend, Gold may follow suit and test what has proven to be difficult resistance.
In the short term, we believe Gold may be positive. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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