Gold eyes fifth straight day of losses, closes in on key technical juncture

The pullback in gold continues to play out because the post-election interval. The valuable metallic is now down for a fifth straight day in what’s already simply its worst weekly exhibiting to this point this yr. It has roughly been a case of ready for mentioned pullback to succeed in some key technical ranges on the charts. And we’re nearly there already in buying and selling right this moment.

The 100-day shifting common (pink line) is the important thing technical focus proper now and that’s seen at roughly $2,543. The final time gold truly had a brush in opposition to the important thing stage was all the best way again in February. And the final time that gold traded again under both that or its 200-day shifting common (blue line) was all the best way again in October final yr.

That underscores the breathtaking momentum that has been in play for gold all by means of this yr to this point.

As such, this makes the 100-day shifting common an much more necessary technical juncture now. A break there is not going to solely signify a break within the bullish bias in gold. Nevertheless, it might set off one other wave of promoting that results in a fair greater pullback.

Merchants love key ranges like these and USD/JPY is an effective instance of that when it broke its personal 100-day shifting common again in late July as nicely. The drop there in fact owed to a myriad of different components however the technical consideration actually exacerbated issues. And it may be the case for gold after we get there within the periods forward.

I am nonetheless an advocate for gold within the greater image of issues. Nevertheless, I’d say dip patrons will have to be affected person to let this correction run its course earlier than coming again in. From earlier this week: Gold pullback would possibly show to be well timed for dip patrons

This text was written by Justin Low at www.ubaidahsan.com.



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