Gold continued to fall for most of the day on Friday, finding some support at 1655 and bouncing a little into the close on mild short covering going into the weekend.
This morning, gold remains under pressure, though the selling has slowed and Friday's low of 1655 has so far held in quiet trading. The strong oil price and weak dollar remain supportive factors for gold, though the strong equity markets appear to be diverting funds away from precious metals at present.
Gold remains oversold on a short term time scale, though the market needs to rally above 1672 to give the bulls some confidence that the selling is over. First support below 1655 is the 61.8% retracement of the rally from 1625 at 1653, below that 1650 is the last real support before 1625 comes back into play.
Gold is now trading below all of its major moving averages, after breaking up through the 200 DMA and 20 DMA last week, this must be remedied early this week to avoid lasting chart damage.
Today's video looks at the last couple of sessions of trading in more detail and the "rising bearish wedge" we identified last week before the sell off.
This morning, gold remains under pressure, though the selling has slowed and Friday's low of 1655 has so far held in quiet trading. The strong oil price and weak dollar remain supportive factors for gold, though the strong equity markets appear to be diverting funds away from precious metals at present.
Gold remains oversold on a short term time scale, though the market needs to rally above 1672 to give the bulls some confidence that the selling is over. First support below 1655 is the 61.8% retracement of the rally from 1625 at 1653, below that 1650 is the last real support before 1625 comes back into play.
Gold is now trading below all of its major moving averages, after breaking up through the 200 DMA and 20 DMA last week, this must be remedied early this week to avoid lasting chart damage.
Today's video looks at the last couple of sessions of trading in more detail and the "rising bearish wedge" we identified last week before the sell off.