Down day but off the lows

The price of gold spiked higher on the initial moved lower in the dollar and lower interest rates, but as yields reversed higher, the price of gold tumbled lower.

Technically, the run to the upside was able to break above a downward sloping trendline near $1961. That was also near highs from Monday’s trade at $1961.89.  The move higher continued through the 50% retracement of the move down from the August high to the August low. That level came in at $1969.31.

However those gains were reversed as yields moved higher, and the price has subsequently move down to test the lower at $1907.25. The low price reached $1910.13 before bouncing.

The last few hours have been able to stay below its 100 hour moving average at $1934.13. If the price can stay below that level, the sellers remain in control. 

On the downside, there is a lower trendline at the $1907.60. That level and the $1900 level are downside support targets now for the precious metal

For bank trade ideas, check out eFX Plus 

Source link