Gold reversed sharply yesterday after failing to break through 1350, falling back below support levels at 1330 and key support at 1322, as well as the 50 DMA.
Gold is back within the down trend channel, suggesting that the recent move higher was a "fake out" and another sell off is coming. However, a move back above 1350 would negate this and confirm the breakout as valid.
Equities and oil continue to exhibit strength and the dollar bounced yesterday from around the 61.8% retracement of the recent rally. We expect to see the dollar climb back towards 85 from here, pressuring gold.
Options expiry in gold today could see some volatile and seemingly random moves as traders unwind their positions and hedge their "in the money" options.
Today's video for subscribers looks at yesterday's trading in more detail and our thoughts for our next trade.
Gold is back within the down trend channel, suggesting that the recent move higher was a "fake out" and another sell off is coming. However, a move back above 1350 would negate this and confirm the breakout as valid.
Equities and oil continue to exhibit strength and the dollar bounced yesterday from around the 61.8% retracement of the recent rally. We expect to see the dollar climb back towards 85 from here, pressuring gold.
Options expiry in gold today could see some volatile and seemingly random moves as traders unwind their positions and hedge their "in the money" options.
Today's video for subscribers looks at yesterday's trading in more detail and our thoughts for our next trade.