Investors seek refuge and gold is providing it!! The US dollar, equity and bond markets have all been hit hard and money has not turned to US treasuries either. I guess confidence on anything directly related to the USA is very low right now. No surprise that investors chose to place their faith in Gold, a precious metal that has been bullish since 2016.
However, finding a suitable entry especially in a parabolic trend is not easy. I am hoping for a pullback, perhaps in the region between 3175-3153 as shown on my chart. This region has acted as resistance earlier this month and recently, price broke above it. A pullback has not occurred yet and I am hoping this will happen this week. In the event that it does, that will provide traders a good location for entry and stop placement. Price will also narrow the gap it currently has with the 20ema (mean reversion).
Initial target can be the current high of 3245.40, with the strong possibility that price will extend even higher.
This is not a trade recommendation; it’s merely my own analysis. Trading carries a high level of risk, so only trade with money you can afford to lose and carefully manage your capital and risk.
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It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong – George Soros
