Gold markets have been volatile during the day, initially trying to rally but finding far too much in the way of bearish pressure above to continue going higher. We found ourselves breaking back down to the $1300 level, which was previous resistance. The area should now be support, and I think it's only a matter of time before we get some signal as to where we are going next. I think the next 24 hours are going to be crucial, and we need to hold this area for the bullish momentum to continue. However, I have to say that so far it does not look very likely, and I think that we may continue to see selling. Ultimately, I think that the markets continue to be volatile and therefore probably best left alone.
Small positions may be needed
I believe that you will probably have to use small positions, mainly to protect your trading account. I don't have any interest in trying to figure out the next couple of text, I need to see some type of impulsive candle to get involved. Once I get one, then I can either start buying or selling, but I think the next 24 hours are probably best spent on the sidelines as the markets trying to figure out where they want to go next. Sometimes, it simply a matter of letting the markets tell you where they want to go, and then following. This looks to be one of those times, as we continue to see significant headwinds around the world when it comes to precious metals, but then again there are several unknowns out there that are currently being worked through geopolitical, and that of course can change everything in the blink of an eye.
Gold Outlook Video 27.9.17
This article was originally posted on FX Empire
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