Gold seem to be running hand in hand with oil prices. With a huge gap upon Monday’s trading session opening following the drone strikes on oil facilities over the weekend.
XUU/USD closing on a high at $1488.86 per ounce in the 12th September and opening on a huge gap of over 130 pips, at the $1502.13 price level on Monday the 16th September.
There seems to be a lot of uncertainty following the gap in the gold market, with volatility slowing down, we can expect the gold market to continue sideways movement. Numerous levels for traders to consider, with possible rejection on either the first or second support or bounce off the resistance and head downwards, currently trading just above the 1501.30 price level.
Low volatility makes for an even more difficult market to predict, thus, increasing the risk factor. Caution is advised when trading low volatility markets.