After a far stronger than expected jobs number in the US on Friday, gold broke through support at 1700 before collapsing dramatically to end the week at 1676 at the weekly low.
We did consider there was a possibility of a "washout" sell off below 1700 and this looks to be occuring, however we do not expect the price to fall much further. There is a lot of support in the 1660s and key support at 1630.
Should this fail, the major support at 1525 looms back into view, though we are a long way from there at present.
We may see some volatility in the markets at the beginnnig of the week, as the possibility of follow through selling pressure remains high, the US Election is very much in the balance and fear has returned to the markets.
Today's video looks at Friday's price action in detail and our expectations for the next few days.
We did consider there was a possibility of a "washout" sell off below 1700 and this looks to be occuring, however we do not expect the price to fall much further. There is a lot of support in the 1660s and key support at 1630.
Should this fail, the major support at 1525 looms back into view, though we are a long way from there at present.
We may see some volatility in the markets at the beginnnig of the week, as the possibility of follow through selling pressure remains high, the US Election is very much in the balance and fear has returned to the markets.
Today's video looks at Friday's price action in detail and our expectations for the next few days.