On the daily
chart of gold we can see that today it suffered one of its most profound drop
in recent time. Gold actually dropped 3% after the better than expected
fundamentals from the US made the Dollar rally along with risk appetite in the
markets. Since gold and the Dollar have a negative correlation, when the Dollar
rises, gold drops. On the chart we can also see that the price has dropped to
the 200 day EMA around the 1269 level, which coincides with the 200 week EMA,
no wonder it stalls there momentarily. From this point the price may bounce to
the upside, but the 1300 level could act as resistance.
Big drop on gold.
ReplyDeleteNext target is likely $1,244.
ReplyDeleteIt broke below 1269.
ReplyDeleteThere is still space for further decline!
ReplyDeleteImpresisve drop indeed.
ReplyDeleteHelpful post.
ReplyDeleteGood post. Very helpful.
ReplyDeleteIt seems continue on the downside.
ReplyDelete