gold price analysis , Hedge Funds Long, Specs Chasing – Perfect Trade

gold price analysis , Hedge Funds Long, Specs Chasing – Perfect Trade

gold price analysis , Hedge Funds Long, Specs Chasing – Perfect Trade

 

gold price analysis are spiking higher within the early trade on Friday. Today’s upside momentum has put the market during a strong position to challenge last year’s high at $1571.70 over the near-term. the worth behavior in gold and other financial markets indicates that today is probably going to be a “risk-off” day

At 07:26 GMT, February Comex gold is trading $1543.40, up $15.30 or +1.00%

gold price analysis The catalyst behind today’s rally is that the news that U.S. air strikes in Iraq killed a top Iranian commander, heightening geopolitical tensions. Trader bought gold due to the action, but speculators are buying gold in anticipation of retaliation from the Iranian government and military

Daily Swing Chart Technical Analysis

gold price analysis , Hedge Funds Long, Specs Chasing – Perfect Trade

The main trend is up consistent with the daily swing chart. the most trend was reaffirmed on Friday when buyers took out the October 3 main top at $1532.40. subsequent upside target is that the September 24 main top at $1549.90. this is often the last potential resistance before the September 4 main top at $1571.70
gold price analysis On the downside, the most trend will change to down on a trade through the December 9 main bottom at $1463.00. This level is followed closely by additional main bottoms at $1456.60 and $1453.10

The main range is $1571.70 to $1453.10. Its retracement zone at $1526.40 to $1512.40 is support

Daily Swing Chart Technical Forecast
gold price analysis Given the strong rally, the sole thing that long investors need to worry about may be a sudden shift in momentum to the downside. Signs of topping action will include a failure to require out $1549.90 with conviction, and/or an opportunity below the previous top at $1532.40

Turning lower for the session on a move under $1528.10 will send a robust signal that the selling is bigger than the buying at current price levels. an in depth under this level could trigger the beginning of a 2 to three correction
gold price analysis For the longs, we’d wish to see a solid move through $1549.90 then the establishment of support under this level. this may indicate that speculators are chasing the market higher. If this move can trigger enough upside momentum then search for the rally to increase into $1571.70
gold price analysis Remember, the hedge funds are long for about two months. These professionals built the support base. the general public is trading the breakout so their likely to overload on the long side at some point. The hedge funds are probably beginning to sell to the general public speculators