tips for traders
tips for traders

Tips for traders, 11 August 2020

With plans to provide more and more liquidity to markets, the prices of commodities have soared to new highs. Oil has reached a three-month high even though it has flattened for some time. Gold reached its all time high at $2075.11/troy ounce.

At the moment, the appreciation of various instruments looks like a bubble because the fundamental data in support seem to be lacking or absent. On the other hand, the price of gold has soared due to two main factors: the fear of participants in markets and the flood of liquidity. Fear among gold traders is still very low while liquidity is flooding the market.

tips for traders

https://www.tradingview.com/x/xuymmXyS/

Gold has breached its all time high from 2011 at $1920. At the same time, $2060 was where many traders took profit. For now, it makes sense for the price to be in consolidation mode, with the potential for a decline to $1725-1850.

This area is only anticipation for later participation. The risk is too high to buy now. For short-term traders, buying and selling now could still succeed. Remember, though, to watch risks during volatility.

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