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Gold tests 10 month lows as sellers remain in control.

Continues the post Election fall

Gold has moved to new session lows at $1158.02. That is new 10 month lows for the precious metal. Gold traded as high as $1337 on election day. Since that time it is down over 13%

What are some of the dynamics in addition to a more bearish technical view:

  • A rising dollar decreases the value of other countries' currencies. This decreases the demand for commodities including gold. It also decreases the prices.
  • When the U.S. dollar starts to gain its value, investors look to get out of alternative investment as a source to store value. Gold is one of those assets that get sold.

  • There has also been some chatter of less demand for jewelry.
  • Concerns about Armageddon on a Trump victory has not panned out. Plus concerns about other events like Brexit and Italy have been contained.

Technically, looking at the hourly chart below, the 200 hour MA has been a good ceiling area that has attracted more selling. The high corrective prices did move above but there was limited momentum. 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.


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

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