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.
