Gold: The bears are targeting 1.33
Gold dipped on Wednesday losing more than 2% on the day as the US Dollar continues to strengthen. Yesterday’s big fall is reinforcing the bearish outlook in the gold market and puts new support areas in focus. At 1.379 at the time of writing, yesterday’s fell off looks far from coming to an end. Key support for the bears to watch sits at April’s lows, at the 1.334 area. A break below that area would open the door for abrupt declines towards the psychological important 1.30. We do expect to see a lot of noise in the 1.33 area however and a renewed interest in the precious metal cannot be excluded. For the short-term outlook in the market to change we need to see a break above key resistance level at 1.418. In the case, we expect the precious metal to continue its grind higher to 1.470.
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