Gold falls, but finds support targets and rebounds


Gold retraces towards the $2000 level

Square gold

Gold

Gold is the most traded and most important commodity. Prized for its historical significance and used to trade goods, the gold market today is estimated at nearly $2.4 trillion. The value of gold fluctuates constantly, as it trades on public exchanges where its price is determined by supply and demand. . Gold has historically had considerable importance and even today it is highly sought after. Gold has been used as currency because it does not corrode, and the material allows some absorption of light creating a yellow glow, hence the name yellow metal. Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, creating the flow of demand and supply. It can be pure speculation, to acquire or distribute physical gold, or as a hedge for a trading application. For day traders, the goal of trading gold is to profit from its daily price movements. It should be noted that physical gold is not actually handled or taken, but transactions take place electronically and only profits or losses are reflected in the trading account. There are several ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts for difference (CFDs). Beyond retail brokers, the primary way to trade gold is through a futures contract. It represents an agreement to buy or sell something, i.e. gold at a later date. Buying a gold futures contract does not mean that you actually have to take possession of the physical commodity. sold to. However, on a futures exchange, gold moves in increments of only $0.10. This increment is known as the tick. This is the smallest movement a futures contract can make. If you buy or sell a futures contract, the number of ticks the price moves away from your entry price determines your profit or loss.

Gold is the most traded and most important commodity. Prized for its historical significance and used to trade goods, the gold market today is estimated at nearly $2.4 trillion. The value of gold fluctuates constantly, as it trades on public exchanges where its price is determined by supply and demand. . Gold has historically had considerable importance and even today it is highly sought after. Gold has been used as currency because it does not corrode, and the material allows some absorption of light creating a yellow glow, hence the name yellow metal. Ultimately, institutional and retail investors buy and sell gold contracts or physical gold, creating the flow of demand and supply. It can be pure speculation, to acquire or distribute physical gold, or as a hedge for a trading application. For day traders, the goal of trading gold is to profit from its daily price movements. It should be noted that physical gold is not actually handled or taken, but transactions take place electronically and only profits or losses are reflected in the trading account. There are several ways to ultimately trade gold. Retail brokers typically offer exposure to gold through contracts for difference (CFDs). Beyond retail brokers, the primary way to trade gold is through a futures contract. It represents an agreement to buy or sell something, i.e. gold at a later date. Buying a gold futures contract does not mean that you actually have to take possession of the physical commodity. sold to. However, on a futures exchange, gold moves in increments of only $0.10. This increment is known as the tick. This is the smallest movement a futures contract can make. If you buy or sell a futures contract, the number of ticks the price moves away from your entry price determines your profit or loss.
Read this term fell more than $70 that day, and in the process fell below its 100 hourly moving average at $1987.28, and moved into a swing zone between $1974.40 and 1980 $.70. The pair also approached the 50% midpoint of the rise from the March 24 low at $1,974.20.

However, the support buyers opposed the 50% level and the low of the swing zone (the low price reached $1976.30) and have since driven the price back towards the $2000 level. The current price is trading at $1995.70 as I type.

The inability to push below the target support levels and hold the 50% midpoint could give buyers a more “buy the dip” mentality. Although inventories are higher and crude oil remains lower, reports from Ukraine indicate that the bombing continues despite a supposed ceasefire so that civilians can leave through the corridors.

If the bulls start to take more control after the drop, watch the 100 hourly moving average at 1987.29 for tight support. Breaking back above $1996.91 (38.2% retracement) and the natural resistance at $2000 would once again give bulls momentum to the upside. Above that, and the $2020.98 level would be targeted (see blue numbered circles).


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