The Range Narrows in Gold, As Sentiment Improves But Uncertainty Remains - Forex News by FX Leaders

The Range Narrows in Gold, As Sentiment Improves But Uncertainty Remains

Posted Thursday, September 17, 2020 by
Skerdian Meta • 1 min read

GOLD was very volatile from January this year until late August, as the sentiment in financial markets turned massively negative, due to the coronavirus and the lock-downs. Gold broke above $2,000, making record highs in the first week of August, but then made a strong reversal down.

The price declined more than $200 pips to $1,860s, but then it turned higher again after failing to make new lows. Although, buyers couldn’t make new highs, which means that we saw another reversal lower. Since then, the highs keep getting lower and lows keep getting higher.

This sort of price action points to a triangle being formed in Gold, which means that the range is getting narrower as the volatility decreases. The trades are getting smaller on Gold, so we suggest that you place closer targets if you are trading Gold, until a breakout takes place in either direction.

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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.
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