The sell off in gold continued yesterday, with gold making a low of 1366 before rebounding to close around 1380. The market looks very weak technically and, although we may see a mild bounce over the next day or two as Chinese buyers return to boost physical demand, the down trend remains in force and prices are likely to continue to move lower.
We anticipate a retest of 1338/1321 - it is likely that these levels of support will fail and we will see another sharp drop in the price of gold, although this drop may be short lived.
Equities and oil are moving higher and the dollar is stabilising after falling sharply in recent trading sessions. The fact that gold has not risen as the dollar has declined from 84 to 81 is very concerning for the bulls and a clear indication that the down trend remains the dominant force at this time.
A bounce in the dollar, coupled with a renewed rally in equities during the weakest part of the year for gold prices, suggests that our analysis for near term weakness is the most likely scenario.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
We anticipate a retest of 1338/1321 - it is likely that these levels of support will fail and we will see another sharp drop in the price of gold, although this drop may be short lived.
Equities and oil are moving higher and the dollar is stabilising after falling sharply in recent trading sessions. The fact that gold has not risen as the dollar has declined from 84 to 81 is very concerning for the bulls and a clear indication that the down trend remains the dominant force at this time.
A bounce in the dollar, coupled with a renewed rally in equities during the weakest part of the year for gold prices, suggests that our analysis for near term weakness is the most likely scenario.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.