Gold has experienced a strong amount of selling early this morning and has come off of its highest value levels. However, this current surge of selling could mean some traders are merely cashing out of winning positions and they may actually look at this current decline as another buying opportunity relatively soon. Support for gold this morning via short term technical charts appears to be around 1755.00 USD.
In the first week of June, the precious metal experienced a selloff from previous highs and sank to as low as 1680.00 USD. Volatility is not out of the question in gold just like any other asset and traders must be ready for fast markets, but the precious metal has shown a strong and capable long term trend as global economic concerns have bolstered Gold’s reputation as a safe haven. A capable value range between 1725.00 and 1739.00 USD has dominated the past month of trading in large measures.
Gold touched a high value of nearly 1779.00 in recent trading but has come under pressure since attaining that high watermark. Last night’s wave of negative news from the US regarding coronavirus did not spark more buying of the precious metal and this proves investors may believe Gold has top value, for the time being, and has been priced in speculatively in the short term. Current support at 1755.00 US Dollars per ounce for Gold may prove an inflection point today if traders question the higher values of the commodity. However, the rise in the value of Gold over the last two years is because investors also have fundamental concerns about the global economy.
If Gold should fall lower in value today and test support near the 1755.00 juncture it could prove an interesting buying opportunity. A lower value coupled with the potential of further negative news from US media regarding the worrisome statistical trend about Coronavirus could produce safe haven buyers stepping into Gold short term. The addition of speculative buyers coming into the market and lower prices that are testing short term support levels could prove enticing for speculative buys of the precious metal today and tomorrow before going into the weekend.
Gold Short Term Outlook:
Current Resistance: 1770.00
Current Support: 1755.00
High Target: 1780.00
Low Target: 1749.00
