Gold broke through the key 1554 support level late yesterday and has continued to sell off overnight, hitting a low of 1540. The move down is clearly impulsive, compared to the corrective choppy action of the past month and there appears to be more downside to come, possibly a lot more.
The major support level at 1525 is not far off now and the selling in gold is accelerating as we approach this level. Silver needs watching as it has led gold lower in the past few days and is also homing in on major support around the 26 level.
It looks more and more likely that we are going to have a "washout" plunge, possibly taking out all of the sell stops below 1525 and clearing the decks before finally moving higher in the next rally phase.
The dollar is much higher overnight, pressuring gold further, equities continue to climb and oil has also sold off sharply. None of these are supportive for gold.
The major support level at 1525 is not far off now and the selling in gold is accelerating as we approach this level. Silver needs watching as it has led gold lower in the past few days and is also homing in on major support around the 26 level.
It looks more and more likely that we are going to have a "washout" plunge, possibly taking out all of the sell stops below 1525 and clearing the decks before finally moving higher in the next rally phase.
The dollar is much higher overnight, pressuring gold further, equities continue to climb and oil has also sold off sharply. None of these are supportive for gold.
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.
King Regards
