Rose of gold markets during the beginning of the session on Wednesday, perhaps in response to hints Federal Reserve Board to add more through quantitative easing announcement on Wednesday. However, there was no hint of such, and we think that a lot of sales that we saw in the late trading session could have been predicted based on the fact there is no final decision from Washington on facilitation.
Of course, to decide when easing or at least suggests that, weaken the dollar, which would push gold higher. Due to the failure to do so, the group of traders who had bought gold in the earlier in the session and will undoubtedly have to sell. This is essentially a set of “weak traders,” and really should not be taken into account in the long term.
We still feel that the gold market is stuck in a large collection area, and probably will be so until the end of the summer. At the time of autumn, many large companies step up in size, with the result that we see may deviate slightly slowly over the next month or next. We still see the level of 1540 dollars as support large, and that goes all the way down to the level of at least $ 1500. As for the resistance, we believe the level of $ 1640 is the beginning of the resistance. So we’re ready to buy candles closest to the support level of $ 1540, selling candles resistance in the vicinity of 1640 dollars. In fact, this may be the only open trading in this market for the month or the next two months, and that this will continue in circulation.
We suggest that the position sizes are slightly smaller, as it can get sudden movements that would lead to ease the movement of the market for less than usual. However, if you are trading in only three decades, we recommend you to cut in a decade or two. This is simply just a way to protect you against sudden moves, which is expected very promptly, and in view of the headlines Alsardh from Europe and the Middle East.