Gold fell sharply overnight in a move which saw it drop back below $3,300. The sell-off came despite US dollar weakness, a factor which many observers see as bullish for gold. The lessening in geopolitical tensions, together with the improved outlook as far as President Trump’s trade wars are concerned, were good excuses for the sellers to come out in force.
Gold was hovering around $3,280 this morning, a minor support level which has held over the past month.
The daily MACD has dropped back to neutral levels. But it is pointing downwards, and its gradient suggests that downside momentum has increased. Should gold fail to hold current levels, then the next significant support comes in around $3,200.
Source: TN Trader
Silver also dropped sharply this morning, losing over 2% and taking it back down to its own level of minor support around $36 per ounce. As the chart shows, $34 is a far more significant level of support, and a pullback to here would certainly help to reset the daily MACD, which remains overbought.
