Gold drifted lower in quiet trading yesterday morning before accelerating to the downside on the publication of stronger than expected PMI data that suggested an increasing recovery in the important service sector of the US economy.
Overnight, gold has fallen further and is trading well below 1300 and the lower boundary of the recent uptrend - this is a bearish development and if gold cannot recover back into the up trend channel quickly the decline will accelerate in coming days.
A break of Friday's low at 1282 will see the bears drive home their advantage and push gold much lower as we commented was likely yesterday. We have just seen a bearish MACD crossover on the daily chart that portends much lower prices ahead.
Equities remain at all time highs and are consolidating recent gains, oil remains above $106 and the dollar has stabilised following a recent sharp decline. It is worrying for the bulls that gold is falling in an environment where the dollar is steady - we expect a dollar rally to commence imminently, pressuring gold further.
Today's video looks at the recent action in more detail and our thoughts for this week's trading.
Overnight, gold has fallen further and is trading well below 1300 and the lower boundary of the recent uptrend - this is a bearish development and if gold cannot recover back into the up trend channel quickly the decline will accelerate in coming days.
A break of Friday's low at 1282 will see the bears drive home their advantage and push gold much lower as we commented was likely yesterday. We have just seen a bearish MACD crossover on the daily chart that portends much lower prices ahead.
Equities remain at all time highs and are consolidating recent gains, oil remains above $106 and the dollar has stabilised following a recent sharp decline. It is worrying for the bulls that gold is falling in an environment where the dollar is steady - we expect a dollar rally to commence imminently, pressuring gold further.
Today's video looks at the recent action in more detail and our thoughts for this week's trading.