Gold Keeps Trading Between MAs as Uncertainty Prevails - Forex News by FX Leaders

Gold Keeps Trading Between MAs as Uncertainty Prevails

Posted Tuesday, October 22, 2019 by
Skerdian Meta • 1 min read

Gold was pretty bullish during summer, climbing around $280 as safe havens attracted bids due to the deteriorating global economy and the escalation of the trade war. So, the buying pressure was very strong during that time and USD/JPY was falling down hard as well.

But, the sentiment improved since September and the climb stopped for safe havens. Gold retreated lower last month, but in October GOLD has traded mostly sideways. The range was wider earlier this month, but in the last two weeks the range has narrowed considerably.

The sentiment has improved in the last two weeks, especially after the partial trade deal between US and China and the Brexit deal. So, Gold has traded between the 100 SMA (red) at the top and the 200 SMA (purple) at the bottom.

This shows that despite the improvement in the market sentiment, traders are still uncertain. As long as uncertainty remains, Gold will trade between these two MAs. So, trading the range for now is the way to go, sell at the top and buy at the bottom.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of