Gold was weaker in early trade this morning, continuing a slide which began yesterday. The move saw gold fall back below $3,400, a level which had acted as resistance for around two months now.
Gold finally broke above $3,400 on Tuesday and went on to climb to a six-week high just below $3,440 in the early hours of Wednesday morning. But it then turned lower, and $3,400 failed to act as support on the way back down. Traders are now wondering how deep this pullback may go. There is some mild support around $3,300, but $3,200 is a far more significant level.
The daily MACD remains neutral, suggesting little in the way of momentum in either direction. But for now, investors are in full ‘risk-on’ mode as they take every opportunity to increase their exposure to equities. This means that there’s less incentive to diversify into ‘safe havens’ like gold and silver.
Source: TN Trader
For now, as can be seen in the chart above, gold is back within a trading range which has broadly held since April.
