Gold is down $16 to $1276 today in the fifth consecutive day of losses.
There is talk of Middle East buying at these levels but some technical help is also on the way. The big news overnight was the break of the 200-day moving average. That sparked a very quick move to $1273 from $1284 as stops also gave way on the break of the August low.
Gold daily
The key support line is the Jan-June trendline that forms the bottom of the long-term wedge in prices. It’s at about $1270 today and with the potential for dovish comments from Yellen on Friday, I struggle to envision it breaking over the next 24 hours.
That said, we’re on the cusp of a bull market in the US dollar because the Fed will eventually start the hawkish talk. Gold will bounce before then and I like selling it.
On Monday, I argued for gold shorts at $1300.
