Gold is Trading under unprecedented Volatility

Gold's general commentary: As Bond Yields (# -0.77%) are Trading on losses for #4-consecutive sessions (pricing in Lower Low’s extension), I have the Buying pressure visible on most charts regarding Gold, along of course with the virus fears rising. Current configuration should last at least as High as #1,758.80 - #1,762.80 (my personal Intra-day maximum). If #1,762.80 Resistance breaks and market closes above, I add more Buying orders on mentioned levels aiming at #1,782.80 (slightly below #1,800.80 psychological benchmark). As expected, Buying accumulation I discussed throughout the session started and the Technical reason behind it was the Ascending Channel configuration which was adding confidence to Buyers, and attracted Short-term Investors, triggered their pending Buying orders (spike towards #1,762.80 few Hours ago confirms the above). Hourly 1 chart remains an Ascending Channel (ready to break above the Neutral Rectangle on Hourly 4 chart), so I will be keeping an eye on the Daily chart’s #1,782.80 for Medium-term Resistance attempts and the Hourly 4 chart’s #1,762.80 for Short-term Resistance. Technically the Hourly 4 chart’s Resistance has been unbroken for a while now and rejected the Price-action on multiple occasions, so you realize the significance of this level. I doubt that nearby Resistance cluster will break without strong catalyst, however on the other side, Selling reversal is strongly limited aswell and #1,742.80 is the last line of defense for Buying bias to be sustainable.


Technical analysis: No strong Bullish impulse regarding the U.S. session opening, as Gold didn’t extended recovery candles and finally invalidated both Resistances in one hit / try (I cannot treat #1,762.80 as an breakout since strong Volatility Gold is Trading under). This is a typical sign that the market should continue consolidating, waiting for a catalyst to reveal an direction. Since Gold is Buying every Bottom since early September, fractal which is repeated #3 times, and statistically, every variance that Gold repeats #3 times or more, it becomes a cycle which every Gold Trader should take into consideration. As Fed commentary usually arise Buyers on the aftermath - Gold continues the Buying sentiment, engages the consolidation Rectangle (lately #5-session consecutive run of #20 point Trading on average), then engages the steeper decline. Regarding all mentioned above, I can expect Trading to be performed within #1,742.80 - #1,762.80 where Gold can engage the consolidation Rectangle, and then again deliver Lower Low’s or Higher High’s extension.


Fundamental analysis: Fundamentally, the risk-off sentiment that DX Investors had these past few sessions should fade away after this result as Investors will remove capital from riskier assets such as DX and Bond Yields, and can go back to safe-haven metals such as Gold with confidence. Meaning that if DX gains value, Bond Yields should benefit along with the Stock markets, which can engage the Selling sequence on Gold, and vice-versa, which is the case at the moment, regarding my configuration. However, pullback to the #1,732.80 - #1,742.80 Support zone and possible Price-action rejection can be distinguished as an Buying opportunity, above #1,752.80 Resistance, I expect last week's late Buyers to yield and push the Price-action towards #1,762.80 Resistance once again. It is Highly important to note that Gold always repeats it’s cycles, as they are the key in being Profitable on Gold markets, along with the patience to remain on sidelines until Profitable pattern emerges. Critical session for Gold’s Short-term trend today. Personally, I am surprised that Selling sequence is extended all the way below #1,742.80 first Support, as Daily change percentage of #20+ points is Price-action suitable only for Scalpers since they are getting most of the returns. You should be in excellent Profit if you followed instructions from yesterday's session commentary.