Gold is down 0.9% on the day to $1,722
The bounce yesterday in gold is fizzling as the yellow metal continues to struggle to stay afloat for the most part after breaking the November low @ $1,764.80.
ETFs cut gold holdings once again in the last trading session, resulting in a 12th straight day of declines - the longest streak since 23 December 2016 (when the dollar rallied strongly after Trump got elected as US president at the time).
The bullish argument for gold has quickly turned on its head since the new year and at this stage, it is easier to pick out who isn't bearish on the gold outlook in the short-term.
As mentioned in previous posts, the ETF holdings chart is still the biggest tell in gold momentum right now and the trend in the largest gold ETF i.e. SPDR Gold Shares clearly tells the story in the gold market since peaking in October last year:
Going back to the daily chart, $1,700 looks to be the likely first target but given the depth of the pullback and retracement, we could get interested dip buyers coming in at $1,650-70 levels unless the Fed really does see reason to let yields (and the dollar) run higher.
