Gold’s plunge hasn’t taken it off the table for traders - eToro Tips & Picks

It may be worth jumping back to the old fashioned safe havens for trading opportunities (Source: Getty)
After a week that has been dominated by earnings and the Greek debacle, traders are now looking to focus on assets that are a little more of the norm. However, with more in the way of earnings yet to come and the risk of Eurozone news again upsetting the balance, traders do still remain risk-off.
The Fed is the next risk point on the agenda now that the market is getting a little numb to the Eurozone. It looks more and more settled by the day that we will see a small rate hike in September, but that by no means suggests that the markets will give investors an easy ride.
With the risk-off play in mind, it may be worth jumping back to the old fashioned safe havens for trading opportunities.
Gold had lately been a fairly simple asset to trade, with an easy range to pick the top and bottom of. However, recent moves in the euro and oil have meant some downside risk in the precious metal. But the break of such key levels hasn’t led to gold being taken off the table as a trade.
The downside support, which was such a key area in the previous range, is now acting as resistance on the upside. With more Greek exposure, the risk of a rate hike in the near future by the Fed, and yet more earnings due for release, we could well see traders holding onto something with a simple range. The recent moves have led us to trade gold in exactly the same way, only the range is 100 points lower.
ETORO POPULAR INVESTOR: @FALLOND
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