The price of gold has seen an extended decline over the past week, culminating in a test of the FE161.8 extension, as per the daily time frame XAUUSD chart below.
Gold had moved to seven-month lows, and a second consecutive weekly decline, after the Fed policy meeting minutes on Wednesday revealed policy makers had entertained the possibility of reducing the ongoing quantitative easing efforts.
When referencing related markets, we note the SPDR gold ETF had the largest weekly outflow in a year and a half. The Standard & Poor’s 500 Index experienced the first weekly basis drop of 2013, after hitting the highest level seen since Oct 2007. The USDX has hit the highest level seen in five months, trading around previous resistance in the 81.50 area
The prior XAUUSD lows, around $1600 are now viewed as potential resistance as is the $1625 area on any sustained corrective move higher.
Gold had formed the so called bearish “death cross,” formation earlier this week. This is seen when the 50-day average breaks under the 200-day moving average.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
