Gold’s Range May Lead to Sharp Decline
Prepared by Jamie Saettele, CMT
I wrote last week that “when viewed in the proper context, price action since September appears as nothing more than consolidation within a secular bull market. Still, resistance is 1670/85 and a drop below last week’s low should trigger losses towards 1600.” It may be appropriate to adopt a more bearish tone on gold however as the metal is weakening in early month trade for the second consecutive month (early month direction is often a ‘tell’ as to the larger trend). I’d much rather express my views through FX, but look lower towards early year pivots at 1600/10 as long as gold is below 1700.
Bottom Line (next 5 days) – lower?
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.