Gold fell yesterday. The weaker tone persisted in Asian Pacific trade overnight as gold dipped below $4,000 for the first time in nine days. But it soon bounced back as buyers stepped in to support prices. Last Thursday, gold came close to trading back at $4,250. But since that high point, it has lost around 6%.
Just over a week ago, the daily MACD curled up off the neutral line, suggesting that upside momentum was picking up. But it has now flattened out and has started to point lower, suggesting that the selloff from October’s all-time highs may not have completed.
Source: TN Trader
Silver was a touch higher this morning and was closing in on $50.50 at the time of writing. But it had fallen below $50 per ounce overnight to hit its lowest level in just over a week. Like gold, its daily MACD appears to be rolling over again, suggesting a loss in upside momentum.
If so, then the path of least resistance could soon be pointing downwards again. Should prices head lower, then the area around $50 hasn’t offered up much in terms of support.
Instead, $49 and $47 per ounce look like greater significance, followed by $45. But if the bulls come back to get the party started again, then there’s very little resistance between current levels and the all-time high of $54.50.
Source: TN Trader
