Can someone from the more experienced traders explain why Gold today started falling since 11:30, inspite the Corona crisis arrived in Italy and Korea? Who makes this,?
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All markets go from low volatility to high volatility.
The time to have been in gold was about 10 days back, certainly not when it’s making headlines
The moves Frday and Monday were strong, it could not go up much more after that.
The tell tale sign it would pullback was it’s large gap opening in Asia and run up prior to US open.
Very little generally happens Mondays so this excessive move was the perfect excuse for the swap dealers to pile on their shorts.
Remember the dealers behave opposite to us, they short the big rallies.
But gold still intact and a successful close above 1600 for the month is a very good sign if your a gold bug.
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I see, but this sharp downmove since yesterday 11:30, considering the worsen situation (Corona, US indices fell…) was a big surprise…so I suppose the equation
" very bad news cause always gold to rise immediately " is not always valid.
I think you’re a bit confused here. Gold is higher than it has been for about 7 years. If some people decide to take profits and sell off gold, then the price takes a hit. It doesn’t just run vertically upwards like a train because there’s bad news. If it did, then everybody would make a fortune out of it.
We’re not even in a pandemic yet, there’s still a lot more risk if this can’t be contained.
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ussually when there s bad news price goes up, and goes down on good news, that s cos the rallies are beeing sold into and the sell ofs are beeing bought into. almost always when u think it will go up or down forever finds support or resistance, large players with big pockets are using fomo to sell or buy from retail in cases just like these, ex corona virus.my point is i wouldn t just expect it to go up or down forever just cos corona persists, corona can even worsen, but in the same time if large operators decide to sell gold in huge amounts, not even the worse news could push price to make new highs. i dunno if i explained myself in an easy to understand mannner, just saying i m using caution and rely more on what the chart is tellin me rather then news and breaking stories. ofc this is just my opinion. cheers
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I see, thanks
By the way, it’s interesting that some Fund Managers published two days ago that people should be aware of a sharp downmove correction, at least this really happened
But I would say if the Corona crisis shows no end, the next sharp upmove will happen soon
I’ve been trading for a long time, gold especially and I definitely agree with your thesis but you should never let opinions get in the way of the price action.
Personally think we may have a few weeks back and filling while the gold market digests the very large gains.
Bullish sentiment needs to be worked off before a new strong upmove.
Be wary of betting against humanity’s resilience to solve problems.
As a former gold bug I witnessed many a wish for disaster and mad Max type scenarios. But the gold bugs were wrong more than right, really would not be surprised if this is a gold top
Gold cannot just fall for no reason because of the bad news that applies to different countries, because we know that there are assets that correlate with gold, so if there was not a strong level, it means that the reason to look for the reason is in them…
Gold was falling because:
It was massively overbought.
Large scale short selling on the Comex.
It’s really that simple.