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
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