Gold is down $28 to $1256 today in the largest percentage drop since October.
So far in 2015, gold has been cruising and was up by 10% as it rose above $1300 last week. The drop today could be a simple retracement after a one-way rally in 2015 but it could also signal that the Fed wasn’t as dovish as hoped.
The lows today rest near the Oct high and that will be an important watermark on a closing basis. The 38.2% retracement of the 2015 rally is also at $1254.
I’ve been long gold since the start of the year and took off half near $1300. If prices can stabilize here, I’ll add more tomorrow. If not, the $1240 looks like a strong buying level.
