Yesterday when i was making video for my youtube channel gold was trading at 1566$. Just in 6-7 hours gold crashed from 1567$ to test 1546$. A good 21$ crash without any major reason or announcement. We had a sell in gold as i gave a sell gold signal at 1559$ for target at 1549$. We closed our gold position with profit. However gold did not sustain on lower levels and fired back to test 1559$.
In less than 12 hours xauusd crashed from 1566$ to 1546$ then fired back at 1559$. It was one hell of a day for gold traders as many positions got butchered by this wild move & many traders panicked to take positions with crash and with sudden rise in market.
I have already cleared in my weekly video Davos meet come with major volatility. Yesterday was only first day and we may see extreme volatility till Friday as World Economic Forum proceeds further.
Yesterday even dollar index behaved very wild. Dow jones also participated in this mayhem and butchered major positions to reduce the open position figure by the end of the day. We have 3 more days before WEF conclude in Davos. So i would advise to trade with extremely tight stop loss and trade low qty.
For now gold price is trading at 1552$. Good support in xauusd chart stands at 1544$. If trader break and sustain below 1544$. Then expect good pressure in gold till 1535$- 1525$.
Gold resistance stands at 1561$. If trader break and sustain above 1561$. Then expect good rise in xauusd till 1570$ – 1580$.
Conclusion: Currently gold trend is weak. Avoid buying in this precious metal till market sustaining below our resistance. Avoid trading big lots this week as volatility may increase in upcoming days.
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