Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Gold Cannot Fight The Gravity

ByAdmirals
Published 11/21/2013, 06:14 AM
Updated 01/31/2022, 02:45 AM
GC
-

Gold is negatively correlated with S&P 500, but yesterday, they both moved the same direction – down. Gold is in huge trouble, and bears are supported by strong technical signals. Currently, the price of this commodity (after breaking lows from October) is on the lowest levels since the beginning of the month of July. Sellers continue the movement that started after breaking the lower line of the triangle (blue). Breaking the 1,260 support (green) increased the momentum which was also supported by the hawkish comments from the FOMC. 1,260 will now be the closest resistance and price should not come back above.
Gold Daily Chart
Chances that Gold will fall to its recent long-term lows from June are high and this is the base scenario for this commodity. Some traders will want to use the low prices and buy, but this strategy is rather risky in the mid-term, as gravity is recently one of the biggest enemies of Gold and there are absolutely no technical signals that the shinning metal will start a significant bullish retracement anytime soon.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.