During the Tuesday’s Asian session, Gold prices remained under multi-week highs. Traders had a bearish edge as they waited for clearer signals. The precious metal has struggled to sustain downside pressure, as it is in the absence of follow through selling.
Over the course of the Asian trading session, gold prices showed a clear bearish outlook. Despite briefly flirting with higher levels, they failed to hold onto gains, reflecting a market hesitant about committing to a bearish trend. 33 analysts noted a lack of strong selling conviction in this environment. This has pushed prices deep into the red.
Market participants pointed out that gold is having a difficult time breaking out of its range. They cite this challenge to macroeconomic and geopolitical factors that are influencing investor sentiment. Market participants are still cautious, but at this point traders have not completely given up on their positions. The absence of more vigorous bearish pressure is a testament to this uncertainty.
Although it’s a tough environment, not all market analysts have lost hope on gold’s long-term prospects. In times of global market uncertainty, investors turn to safe-haven assets such as gold. This trend, if it were to continue, would be a long-term bullish support for gold prices.
“Information on these pages contains forward-looking statements that involve risks and uncertainties.” – [FXStreet]
The recent developments in the gold trading space highlight why vigilance is so important for investors today. Speculators are not firmly convinced that further bearish follow-through selling is warranted. Given the persistent unpredictability in the market, they have to continue to evaluate their approach moving forward.
“You should do your own thorough research before making any investment decisions.” – [FXStreet and the author]
As traders head into what is a very fluid situation, stay tuned. Keep your eyes open and your guard up, #FTF13 campers! Be mindful of abiding technical indicators and ongoing global economic developments that may affect the price of gold.