With Risk-On in most major markets (U.S., U.K., and the E.U.) we have seen Gold consolidate. With the mix of global macro news, Gold may remain consolidated in the coming weeks, bar any negative outcomes. Gold finished last week at +0.1%, highlighting its strong indecision. We’ve traded below the $1,500.00 range for the last 5 trading days as well, showing weakness.
With news out of the U.K. that it’s government voted against the proposed deal, and official letter being issued to the E.U.; Gold investors may see this as a risk-off opportunity and a rally could ensue. If most Gold participants receive this event as positive we will see a gold move lower to $1460 as U.S-China trade deals are still inconclusive with positive noises coming out of both camps.
THE PLAY: If news is taken well out of the U.K., we will buy Gold closed above $1505.00. If the reverse is the case and bearish momentum comes in a confirmed close below $1480 will inspire us to get short.
With news out of the U.K. that it’s government voted against the proposed deal, and official letter being issued to the E.U.; Gold investors may see this as a risk-off opportunity and a rally could ensue. If most Gold participants receive this event as positive we will see a gold move lower to $1460 as U.S-China trade deals are still inconclusive with positive noises coming out of both camps.
THE PLAY: If news is taken well out of the U.K., we will buy Gold closed above $1505.00. If the reverse is the case and bearish momentum comes in a confirmed close below $1480 will inspire us to get short.