Nothing working for gold

I’m taken aback by the weakness in gold over the past two days.

Yesterday, everything aligned for gold gains. The Fed eased heavily and the dollar sold off. Yet gold rallied to $1722 for a moment and then shot back lower.

Seeing how an asset reacts to news is often the most telling indicator and I believe that is the case with gold at the moment.

Gold weakness was confirmed today by a swift decline below the 100-day moving average.

There is scattered support down to $1674 followed by the 200-day moving average.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

13 Comments

  1. @ Adam,what would this be indicative of?

  2. Yea Adam, not sure whats going on hear. I’ll look to get long around 1630 and play a potential cup and handle. Thanks for the story Jamie I know you guys are syndicated,Warren Buffet can kiss my ass.

  3. Hello Adam, GBP has lost 530 pips against NZD from last week, do you see lower than 1.90 ? The interesting point is the same drop happened end of 2011.

  4. Hard for me to comment on NZD at the moment because I’m licking my wounds from trying to pick the top — 9 days in a row of gains today.

  5. 1620-30 is a very attractive place to hit for Mr. Market!! As I say, I have found it hard to buy, and easier to short GOLD lately!

  6. Just sold 1 lot I bought earlier today at 1692.65. Easy 8 dollars…. :)

  7. This has been the worst trading instrument of the year. We have seen massive stop loss runs the past couple weeks. Yesterday’s asian attack was another counter move defying logic. Looks to me like some big boys are having fun regularly flushing out weak hands.

  8. Sorry Bp I can’t agree with you, only on the buy side I made very interesting returns in the last two months… most of my trades are only in gold and I don’t regret them. Just be patient and buy the dips below 1695, it’s proved to be a big success… Probably the strategy will not go on for much longer but hte profits are all booked…

  9. Adam, this NZD is hurting me too, 9 days of gains was supposed to be only for JPY , but now we have a tie.

    But, lets short it again, at .8570

    what do you feel about it?

  10. I never double down on a bad trade. I throw a tantrum, threaten to break things and give myself some time to forget about it. I’m way too pissed off about NZD to give you any kind of clear-headed ideas on trading it.

  11. It’s always a bad idea to try to pick the tops of any strong trend, much more for a trend in a pair with little liquidity like NZDUSD.

  12. I hear ya Rui, gold has a tendency to push down hard thru stops so I tend to shy away from bottoms and look to buy on pullbacks in an uptrend. Yesterday, with the fed news looked like a decent opportunIty to buy around 1710 in Asian markets, and once again a stop loss raid ensued. I’m frustrated, I’ve been washed out too many times.

  13. The more people keep saying BUY, the more I feel the BEAR in me Growl!! 1620-30……retracement, then an eventual 1450!! My eyes are fixed on these levels. No doubt we may see a push toward 2000 at some point!! The kiwi got us all Im afraid, so we can all drown our sorrows together Adam…….!

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