$1525 Looks a Key Level in Gold
Rowan Crosby • 2 min read
Gold has continued to press its bull case overnight, but has since pulled back a touch.
Ever since the latest Trump-China tariff war reignited, when Trump said he would further increase tariffs, it has been GOLD that has been the key beneficiary.
Clearly there is still fear in the air and with yields continuing to fall, the appeal of gold seems to keep on growing.
The FOMC has also remained relatively dovish of late and that makes Gold bulls pretty happy.
Yesterday, we saw Gold breaking out again and it pushed as high as $1550-55, but couldn’t really hold onto those gains. But we are seeing some interesting technicals emerge. With none bigger than the $1525 level at the moment.
$1525 was the previous resistance that now looks like it is holding up strongly as support. We saw that it tried to press lower, but the bids were strong.
We can now use that as a bit of a line in the sand and an inflection point of sorts. Currently price is back around the $1540 mark which is also proving to be a key level.
But now we do have a bit of a defined risk below us. So risking off both $1525 and $1500 would be a good plan, looking for a breakout and another leg higher.
$1500 would also be the recent swing low and if that was to break then I would probably change my bias at that point. But for now I am simply looking for long opportunities when price holds above key support.
So early on today, the plan would be to see if price holds $1525 on a further pullback and then we can risk off those supports levels. The aim would be for a breakout.
The main consideration for me at the moment, is that we seem to get one day up one day down type of action. Which is why I like the idea of buying the pullback at support, more so than the break at the moment.