Early trading yesterday morning saw gold plummet through key support levels first at 1338 and then at 1322 to reach a 2 ½ year low at 1276. As usual when price breaks below a key support level you need to be quick to react, and we were – shorting at 1319 and closing out our position later in the day at 1283 for a decent $36 profit on the day.
Oil and equities had equally negative days yesterday, with the DOW, FTSE and US Crude posting their biggest one day losses in many months. We expect that, in these markets, the upwards trend will continue following these corrections…however the same cannot be said for gold!
Whilst we expect the bulls and bargain hunters to push up the price, closing the week out around the 1300-mark, we foresee more downwards pressure on the yellow metal in coming weeks - with price falling towards 1150…although this may take some weeks to unfold as trading volumes thin out through the summer.
Between 1300 – 1150 there is support at 1280-75, 1260, 1245, 1200 and 1180. We are waiting and watching to see how the market shapes up before picking our next entry.
Oil and equities had equally negative days yesterday, with the DOW, FTSE and US Crude posting their biggest one day losses in many months. We expect that, in these markets, the upwards trend will continue following these corrections…however the same cannot be said for gold!
Whilst we expect the bulls and bargain hunters to push up the price, closing the week out around the 1300-mark, we foresee more downwards pressure on the yellow metal in coming weeks - with price falling towards 1150…although this may take some weeks to unfold as trading volumes thin out through the summer.
Between 1300 – 1150 there is support at 1280-75, 1260, 1245, 1200 and 1180. We are waiting and watching to see how the market shapes up before picking our next entry.