GOLD GOLD GOLD last week you were a little bit of a pain, we caught a few pips on you... but you gave us a little bit of a spanking on other occasions... but thats fine as with correct risk management we came out on top ;p
Price at the moment is very choppy up and down like a YOYO or like a cheap date ;p Even though price is up and down it is still respecting key levels and trends, as we can see from this charts price came down in a fashion to re test the most recent higher low ( yellow box ) and couldn't break this level creating a long spike in and out of this zone which means bulls were too strong and pushed price back up ( this is where a lot of people were taking profit from the nice 400+ pip drop that happened the previous 2 days ) Think about it logically if loads of people all see price is coming to a key level and have already made enough money on this trade to buy a Porsche then they are going to pull there money out the markets causing price to move the other way!
Now if price brakes through our ( green box ) we could see a lovely push higher, and i am expecting this to happen as my bias for Gold in the long run is LONG mainly because of the idiot USA have running the country as he is always causing trouble with other countries and it wont be long before either a WAR or RECESSION breaks out... both outcomes will come to people throwing money into Gold as it is seen as a safe investment, so when the time comes dont say i didn't warn you.
The other outcome is if price respects this zone as resistance we could see another final push down before price then makes that push higher.
Whatever happens make sure you trade safely and use correct risk management because these are tricky market conditions as they are so easily moved by the click of a button from Mr Trump, Trump controls the markets as he wishes so make sure you ave that stop loss in place.
Anyway take care people im off out to see if i can find £2 on the floor, if you see my singing in the street with my hat on the floor be sure to chuck me 10p in it as you know it is for a good cause ;p