As gold fell through the 1654 level, we decided to close our long position and take a small $17 loss.
The market looks technically weak and although gold is trading back above 1654 now, we do not think this will be sustained for long. Gold remains below all of the major moving averages and cannot sustain any kind of rally. Open interest is falling rapidly as are ETF holdings, we can only see lower prices in the short term.
However, bottoms happen rapidly in gold and we are always alert to enter the market when the trade looks compelling.
The market looks technically weak and although gold is trading back above 1654 now, we do not think this will be sustained for long. Gold remains below all of the major moving averages and cannot sustain any kind of rally. Open interest is falling rapidly as are ETF holdings, we can only see lower prices in the short term.
However, bottoms happen rapidly in gold and we are always alert to enter the market when the trade looks compelling.