FXStreet (Bali) – Following last Monday’s $50 price collapse, Gold is yet again suffering sharp losses in early Asian trade, currently retesting, and briefly breaking through its multi-year trend low of $1,083.50.
Gold bears cause further damage, same suspects?
While there were 5 tonnes of reasons behind the hammering of Gold last Monday – 5 tonnes of bullion being dumped on the Chinese market -, the decline in Gold occurs almost at the same time – 1.25GMT Monday vs 0.55GMT today – , thus expect the same committed bearish players having re-engaged in the market. That, however, we would never know.
Gold technicals
Technically, Gold looks set to test the next key level of horizontal support circa $1,050/55 (Jan 2010 low), with a break lower likely to expose a more ambitious bear target towards the big round number $1,000.00. On the uspide, sellers should remain in complete control as long as $1,130.00 is protected. Momentum players have got the upper hand as the Fed rate hike cycle approaches.
(Market News Provided by FXstreet)