Currently we have a weekly supply imbalance in control around $126. As beginner traders, we should not be trading against such an imbalance in control. Last time that imbalance was tested price dropped strongly for some weeks. We should be looking of long positions. There is a strong demand imbalance created lower around $121. Trading Gold ETFs like GLD SPDR trust is no different to trading any other precious metal. All precious metal follow the principles that tell us we shouldn’t be buying after a very strong rally or selling after a very strong drop . Trading is all about waiting for the right scenario before pulling the trigger blindly.
As a swing trader, you should not be looking to go long now on GLD SPDR trust or Gold XAUUSD . Watch GLD SPDR trust video analysis below for full details.