Buying Opportunity on Pullback of Spot Gold Prices
July 20th, 2010 Posted in Oil and Precious Metals
Spot gold prices came off of their lowest level since the middle of May as buyers took the opportunity to enter the market at a relatively attractive price following a pull back in spot gold trading.
Today, the price of spot gold rose to $1193.33, after opening the day at $1182.53. Spot gold prices have fallen more than 5% since their peak price of $1265 at the end of July.
The previous two trading sessions have seen the price of spot gold pull back following a jump in risk appetite as traders piled into higher yielding assets. Speculative traders may have also paired their holdings given the recent turnaround in riskier assets such as equities and the euro.
Much of the recent run up in gold prices is attributed to investors looking for staying power as the global recession punished equities and other higher yielding assets. Gold is known for its staying power in times of economic difficulties.
The buying action seen today follows a drop in the price below the 100-day simple moving average. The recent price decline has moved the commodity close to the support line of $1168. Here traders should find another opportune area to enter long in the spot gold.
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Tags: Forex Trading, Gold trading, Resistance Line, spot gold prices, spot gold trading, Support Line, trend line
