Gold prices fell to a one-month low at $1287 yesterday but what was important was the close.
Gold rebounded late in the day for a close above the 55-day moving average and the July low. It's something I warned about yesterday:
The downside in gold is beginning to look appetizing but the close today will be key with $1292/93 as the key level.
The rebound ahead of the close yesterday has continued and gold has rebounded to $1302.
Prices are now flirting with the 100-dma and the downtrend since mid-July. I lean towards selling here, I struggle to see how gold can rally in the week ahead unless Yellen does something outrageously dovish.
Gold has proven it can't sustain a rally on geopolitics and it's tough to envision a catalyst for USD weakness so I like selling at these levels.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
