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Gold Prices trading near Important Support zone

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Since Jan, theres not much change in Gold Prices. Market structure is still in Range. Prices are trading within the borders of structuralsupport and resistance zone. Structural Support zone is at 1310 1305 whereas Structural resistance is at 1360 1357. A combination of Dollar strength and selling pressure is influencing Golds Price action. Heres the recent Price Action analysis on Daily chart.

Gold Price action retesting the Support zone

Looking at the recent Price Action, we can observe that short term sentiment is bearish. Market participants are selling since Mid-April. Price declined from April 16, resulting in Gold Prices losing almost 50$ per ounce value, as per international Spot prices. In just nine trading days, Gold prices tumbled from 1360 to 1310. The structure looks like a downtrend onlower time frameon 15 Min and 1 hr. Charts. Strong Dollar and bearish sentiment are the pre-dominant factors which pushed gold prices towards the structuralsupport zone 1310 1305.

As we can see, Right now Prices are trading near structural support zone. Price action has tested and retested this support zone multiple times in the past. Bulls were able to absorb the selling pressure and defended the support zone successfully over previous attempts. Can bulls replicate the same behaviour this time? Traders should monitorthe Price actionin coming days for answer. Whatever happens at this support zonedeterminesthe future direction of Gold Prices.

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About the author

Balaji is a Trader, Investor and Self published Blogger. He wrties frequently on his website Balaji is specialised in applying systematic Price action trading strategies and Global Macro techniques on financial markets such as Equities, Dervatives, Futures and Bonds. He is well versed on both International and domestic markets and has trading experience of more than 8 years.  
As a trader his core purpose is to generate superior risk adjusted returns on consistent basis by applying Flexible risk managment combined with a Postive expectancy of Price action strategies. He writes passionately about Technical analysis, Trading strategies, Price Action setups and Global macro events. 
Apart from trading and Blogging, Balaji also mentors aspiring traders, Investors on becoming succesful in highly competative financial markets. He offers permium trading course on which he covers Price action trading methods, Institutional trading strategies and Macro trading.

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