Gold - Good Risk/Reward on move potential move lowerGold has pushed up to the $3k mark over the past few days but lacks volume/momentum to hold $3k and move higher from there.
The recent market dislocation (Gold Futures vs Spot rate) which resulted in physical gold moving from London vaults to NYC has narrowed so that driver for the price has subsided.
Macro Economic turmoil (tariff uncertainty) looks more priced into markets now (although who knows where the bottom is) but gold as safe-haven at current levels looks less enticing for investors.
Gap up from circa $2,955- $2,990 with little market structure between makes sharp drop more likely than further drive higher at this point.
Any move higher likely to be more subdued rather than sharp which allows for tighter stop loss just above $3k mark with $2.98k the next stop then $2.96k then to $2.95k where it meets stronger market structure.
This makes for a 4:1 reward/risk but worth trimming position at weaker (yellow) demand levels/movign stop to break even as/when the move starts playing out.
Wait for move higher toward $2.97k to enter on optimal risk/reward ration and expect any move sharply lower to be in London-NY open hours.
***Remember there is no certainty, only probability combined with good risk management***
