Gold touches a low of $1,261.65 on the day
And that closes in on the year's low posted last week @ $1,261.50. Looking at the chart, gold appears to be finding a firm break below the 76.4 retracement level @ $1,267.14 - a level which has helped to stem the decline in last week's trading.
Despite all the trade rhetoric and what not, gold hasn't been a "fan favourite" since the Fed decided to accelerate its tightening cycle. For me, gold has been looking to be more of a technical trade rather than a fundamental one for the last six months at least.
It formed a double top when the April highs failed to breach that of January, and has subsequently tracked lower but at the same time abiding to technical levels like a moth to a flame.
And the latest breakdown here is just another one to add to that list. Adam also posted overnight about the death cross formation developing, and with a break of the 76.4 retracement level as well it is surely not a good sign for gold bulls looking ahead. A move below the year's low will then pave the way for sellers to drive price to the December low where support is next seen @ $1,236.55.
