Gold: the downside prevails
The gold market had a volatile session on Wednesday. The precious metal rallied 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 freefall at the strong support level of 1694, it looks like the bears have regained control.
This morning the bears increased the selling pressure, dragging the market down to 1697 at the time of writing. The downside potential of the market is further supported by the bearish RSI on the 30-minute chart. A downside penetration of 1684 would open the door for 1678 and 1672. In the alternative scenario where the bulls regain control sooner, a break above 1712 would call for 1722 and 1731.
On to the main topics of today, all eyes will be on the EU summit during European hours. Later in the day a swathe of economic data is due for release across the Atlantic, with the US PPI and US retail sales among the most notable.
Published: 13 December 2012
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