GOLD READY TO MAKE A NEW LOW
The price of Gold is ready to make a new low after a short rally to the 1810 resistance level. Gold rallied from the 1790 support level after the Core CPI and CPI data came lesser then expected on Tuesday. The price of Gold rallied to 1809 but failed to go beyond it as price got rejected from the resistance zone above it.
As price failed to close around the resistance zone, aggressive sellers stepped in as the US market opens for today, driving price lower from 1807, today's high. The price of Gold is trading at 1796 as at publishing time and looking to go lower as the market awaits the NEW YORK opening.
Interest rate will be released by next week and rumor has it that the FEDs will be tapering with the rate. The next major support is at 1784 and once it gets breached, the price of Gold will fall back to 1750 or below.
If you are shorting Gold on the long term, it is advisable to put your STOPLOSS above the 1810 resistance level. Profit can be taken at 1784, 1770 and 1750 or beyond. Use good money management as volatility might increase.
NOTE: This is my opinion on Gold as I have been following this instrument for weeks now. I might be wrong but I always have my money where my mouth is. Good luck to everyone following.
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