Gold's correction should continue today as well

The possibility for a corrective movement in gold is high due to two main reasons: The rise of the risk appetite after the hurracane Irma's damage is less than anticipated, as well as the decline in the tension surroinding North Korea and the lack of nuclear activity during the weekend and yesterday 11.09.2017. The rise of the dollar also causes negative effect in the price of the precious metal.

The risk appetite leads to a grow in the risk-based assets and stocks, and the safe havens are declining (Gold and USD).

Technically speaking, we are talking only about a correction, which will give us better entry price for new long positions.

Gold's price reached serious hight and key resistance levels - the zone around 1344-1365, which will not be broken easily. The created pin bar tells us, that the correction is highly possible, and at the moment the counting of Dem Sequential is under 2 bars - meaning that the decline is more than possible here.

However, the main movement here is long and if the price reaches 1300 will gives us a signal for new long positions.

Стефан Д. Ангелов - Head of Stocks Trading

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