Gold is down more than 1% on the day

Gold briefly touched the recent highs around the 2530 level in the Asian session but eventually erased all the gains made this week and extended the drop below the 2500 level.

This is mostly noise as there has been no catalyst for such a move. We can see in the 1 hour chart below that gold is now trading in a range between the 2530 resistance and the 2480 support. We might remain stuck here until next week as that’s when we will get the top-tier economic data.

These are generally the times when people’s gains get chopped out. For the buyers, it might be better to wait to go long around the support or on the break of the resistance, while the sellers should look to go short around the resistance or on the break of the support.

Nonetheless, waiting for a catalyst might be a better idea.

This article was written by Giuseppe Dellamotta at www.forexlive.com.