Gold taking it on the chin today

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    Down over -1.00%. Tests recent lows

    Spot gold has continued to run lower with the precious metal trading at the lowest level since Feb 8, 2016. The fall took the price below the low from October 25th at 1171.06. The low today reached 1170.25 so far.   The move lower today is the 2nd time the price has peaked below the 61.8% of the move up from the December 2015 low at 1046.43.  That level comes in at 1172.11.  If Gold is going to go lower, that level needs to be broken. 

    At one point this year, gold was king as it was up about 30%. It is currently still up on the year but only by about 10.25%.  What does December bring?  Does the 1172 level break move toward the year end close of 1061?  That is ambitious but so far any bid since the Trump win has not exactly been long lasting. So the sellers most certainly remain in control.  

    Looking at the hourly chart below, the price on corrections has been able to stay below the topside trend line and also the 200 hour MA at the 1196.83 level currently. Stay below those levels (also watch the 100 hour MA at 1187 currently ) and the sellers remain in control. 

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

    This article appears in: Investing , Forex

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