Spot Gold Sell Between $1772—$1775 Target and SL Paid – Neal Bhai Reports
A bullish trade in gold this week is not cut and dry. In fact, it could get a little tricky. Some traders feel that most of the fiscal and monetary stimulus is already priced in and that gold will have some trouble sustaining a rally over $1800.00.
Gold could also break along with the stock market if liquidity becomes an issue. If stocks fall, gold traders may be encouraged to sell pieces of their long positions to cover losses or meet margin calls. We saw this move in March.
Furthermore, if liquidity becomes an issue then investors could start buying the U.S. Dollar again and this could put demand pressure on dollar-denominated gold.
The bottom line: Be careful chasing gold prices higher.
