The absence of Chinese buyers due to the New Year celebrations this week removes a major supporting factor for the gold market and significantly heightens the risk of a sell off.
Technically, gold remains below the key 200 DMA and has closed below it for the past three sessions, and is also below the 20 and 50 DMAs. In our view, the market looks weak and vulnerable to a breakdown from the triangle pattern.
Today's video looks at the "big picture" and the triangle pattern in more detail.