Gold: Further downside potential down to 1.550
Gold rallied massively on Tuesday climbing all the way back to 1.621 before closing at 1.612 on the back of Bernanke’s testimony suggesting that quantitative easing was still the way to go. At 1.611 at the time of writing, the jostling for position between the bulls and bears continues as the bulls can’t seem to find enough momentum to pull the market higher. The descending 50-day moving average on the 30 min-chart indicates that there could be still potential for further declines all the way down to the key support area at 1.550. Only the upside penetration of 1.656 could change the bearish outlook in the market and open the door for 1.698. Traders have a lot to absorb on the economic data front today with the EC economic sentiment during European hours and the US Pending Home Sales later
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