Gold prices fell on Thursday, pulling back from yesterday's fortnight high. Gold was trading below $3,960 last Friday and seemingly under constant downside pressure. But it then appeared that the selling had exhausted itself and gold staged a recovery, with the area just south of $4,000 per ounce once again acting as support.
From there, the precious metal went on to push above $4,160. But then the sellers reappeared yesterday afternoon, pushing gold back down below $4,100. Could this simply be a minor bout of profit-taking which will soon run its course, or are lower cycle lows still in prospect?
There was some mild support around $4,080, although gold slipped below here earlier this afternoon. It needs to break above $4,200 with some conviction to really get the bulls on board. Whether it can do this while the US dollar remains strong remains a big question.
Source: TN Trader
* The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and, as such, is considered to be a marketing communication.
