Gold: The downside prevails
The gold market had a volatile session on Wednesday with the precious metal rallying after the announcement of QE4 all the way up to 1723, only to reverse the gains, creating a long wick on the upside. Although the market paused its free fall at the strong support level of 1694, it looks like the bears have regained the control of the market. This morning the bears increased the selling pressure dragging the market down at 1697 at the time of writing. The downside potential of the market is further supported by the bearish RSI on the 30 min chart. A downside penetration of 1684 would open the door for 1678 and 1672. In the alternative scenario that the bulls regain control sooner, a break above 1712 would call for 1722 and 1731. Onto the main topics of today, LL eyes will be on the EU summit during European hours. Later in the day a swathe of economic data is due for release from across the Atlantic, with the US PPI and US Retail sales among the most notable.
The comment in this blog is the personal opinion of the contributors and not Intertrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. Intertrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.