Breaking the Fourth Wall:The Fourth Wall Will Protect You.
gold is trading at $1286 while metal is hovering around 15.60. The wall of the barrier which yellow metal was unable to break is standing firm in front of the gold bulls. we already informed you that most sellers will be showing up as yellow metal will reach its psychological resistance at $1300 which will provide the significant risk to reward ratio trades for our portfolio. There is no doubt that gold has performed very well in the recent months where we witnessed gold to make almost $115 move from its August low of $1165.
In this analysis, we will cover some reasons-(not all of them) that why we believe that large selling pressure is soon to enter in the precious metal sector which will drag the prices down and we will be able to witness the new bottom in gold and silver market.
We witnessed the highest volume of contract holder for gold at the beginning of 2018
most investors and traders tend to enter the market when prices make a substantial rally and gold market is no different. In early 2018 many traders and investors enter the gold market above $1300 and since then they are having a tough time as yellow metal runs into the bear market for the most part of 2018 but as prices approached the levels at which most investors enter the gold market,what do you think these traders are going to do?
well, we believe psychological part will play a crucial role in this situation because whenever a novice trader or investor buys an asset which quickly plunges in price than the trader most likely to sell the asset when it's about to reach the break-even level again due to the fear ingrained in his mind. Over 700 million contracts traded hands during two separate months from January through May. We are not talking about the physical bullion holders which don't care about the short term volatility but funds and institutions tend more to focus on short term portfolio performance- volume has been declining on the price advance since October 2018.we believe gold will retest the low of $1200 along with the decline in silver prices in the coming months
In this analysis, we will cover some reasons-(not all of them) that why we believe that large selling pressure is soon to enter in the precious metal sector which will drag the prices down and we will be able to witness the new bottom in gold and silver market.
We witnessed the highest volume of contract holder for gold at the beginning of 2018
most investors and traders tend to enter the market when prices make a substantial rally and gold market is no different. In early 2018 many traders and investors enter the gold market above $1300 and since then they are having a tough time as yellow metal runs into the bear market for the most part of 2018 but as prices approached the levels at which most investors enter the gold market,what do you think these traders are going to do?
well, we believe psychological part will play a crucial role in this situation because whenever a novice trader or investor buys an asset which quickly plunges in price than the trader most likely to sell the asset when it's about to reach the break-even level again due to the fear ingrained in his mind. Over 700 million contracts traded hands during two separate months from January through May. We are not talking about the physical bullion holders which don't care about the short term volatility but funds and institutions tend more to focus on short term portfolio performance- volume has been declining on the price advance since October 2018.we believe gold will retest the low of $1200 along with the decline in silver prices in the coming months