Not exactly a breakdown but not exactly a rejection either.
Gold plunged down to $1870 $1270 today, breaking the April low and the 100-day moving average. Not long afterwards it shot nearly $30 from the low to a three-day high. Still, gold was unable to break $1300 and it’s given back some gains. All told, the precious metal is up $7 to $1291 on the day.
The impression is that neither the bulls nor the bears have the conviction to make a lasting move.
Gold daily with 100dma
For me the main event is the breakdown, even if it didn’t last. The rebound came on fears about Ukraine but every time those fears emerge they dissipate a bit quicker. A break above the recent downtrend would invalidate the break below the 100-dma, but until then the bias is lower.
