![]() How to Trade Gold Volatility?ĭue to the high volatility and large swings in gold and silver prices, trading in these metals has become quite risky. We executed a Long Trade for premium members at $1,741 and closed it at $1,789 last week, profiting $48. A quick reversal above this inflection indicates that prices are moving to the first resistance, which has already been reached. The zoom in view reveals that the drop to $1,680 occurred in a matter of minutes. The chart was discussed in the premium section. We will go into great detail in the premium article to discuss the next move in the markets. While the first resistance was met in the $1,790-$1,810 region, it is likely that the subsequent drop through $1,765 will initiate the second move. A re-test followed by a sharp reversal above the descending triangle indicates the presence of bullish forces. Looking at the chart above, the inflection point also coincides with the breakout of the descending triangle. Prices remains bullish as long as $1,680 holds. The significant flux must enter the market at this inflection point. Considering the most recent bull phase in gold, began in 2019, $1,680 is referred to as the Key Inflection point. On other hands, the descending broadening wedge is a bullish price pattern with an 80% probability. According to the fundamentals of these patterns, the ascending broadening wedge is a bearish price pattern with an 80% probability. The chart below depicts the formation of an ascending broadening wedge followed by the formation of a descending broadening wedge. This is a short discussion on the gold behavior after the bounce from the inflection of $1,680 The Gold Behavior Gold prices have so far stalled at $1,795. As we discussed last week, $1,790-$1,810 is the first resistance of this bounce from the inflection point. As per expectations, prices settled in the $1,795-$1,775 range throughout the week. The previous week was designated as the “Wait and Watch” week. Gold prices formed a bottom at the key inflection point of $1,680 and began to rise towards the $1,800 region.
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