USDX's Possible Lid On The Gold Price: See Analysis & Chart
During the Thursday 29 August 2024, NY session of Gold & Precious metals trading, I noticed some good momentum in Long-positions, so priced looked to be headed up to test 2531.65 which is firm resistance (and below from 2528.50 & even beneath there), where on Wednesday during the Asian session a lacklustre performance in price-momentum of Gold relative to Silver saw it sell off strongly all the way back to 2493.50. Good-on-you if you got in at that price-point because the Gold-bulls drive price back up so quickly.
I have digressed a bit, this week we have seen the start of a recovery in the US Dollar and the index that tracks it, the USDX tested the 101.50 level during yesterday before moving back down. I mentioned during the last NY session that I was cashing in my long-positions in Gold and looking at a possible short. Well full disclosure I am still Short-gold today Friday in the Asia session. Mind you I had to get Short in & out 2 times because price rallied against me, that is trading.
I even forgot to book my profits during yesterday when price got to 2528.65. Why? I honestly thought the Gold price with its momentum would take 2531.65. There's my mistake. Never anticipate the market. If you have conviction on a firmly held idea with a variety of technical analysis confluence & fundamentals to go with it, then that is different, but saying to myself 'we are going to get over hard resistance zones (2528.50-2531.65) and 'I'm gonna ride this baby all the way to a new high today', that is wishful thinking.
What I have learnt about trading Gold & Precious metals is to book your profits. Then you can let price retrace and go again in the same previous direction that booked you all that profit.
Anyway, take a look at my chart, please and keep an eye on a break of the 101.50 area where the USDX could engage in a more firmly held rally as we head towards the 'interest rate decision' in the USA in a few weeks time. I think that the Gold-price is extra sensitive to the Dollar at this point in time and I think the rally in the USDX (see an article I wrote last weekend below - click on the chart) that we are going to see may keep a cap or a lid on the Gold price at least until it explodes upwards on an interest rate reduction. This is my analysis only, I don't get cues from anyone else.
* Trading is risky. Please don't rely solely on my investment advice & trade setups.
Regards,
Chris
easy_explosive_trades
