Precious metals take a beating after Friday's China reserve news and large sell orders dumped on the markets
Eamonn had the big drop on his session where gold tumbled to 1086 quick smart. Traders noted that virtually simultaneous sell orders went through both Comex and the Singapore exchanges, ruling out any fat finger possibilities.. Around 5 tonnes went through the SGE in 2 minutes. The normal daily volume is around 25 tonnes
The move sank many mining stocks as well as precious metals in general
The tech played its part in the move with the 1086.18 low coming right on the 50 fib of the 2009 swing up at 1087.23
Gold monthly chart
On the way down it also broke through the support line from Jun 2013 at 1109. We're back above now slightly so look for it to hold some resistance again
The flush out is said to be a combination of the switch to markets trading the Fed hikes and last week's Chinese gold reserve news that was said to have disappointed some
It looks like the bear market continues for gold and it also looks like we've just had a big liquidation which can be healthy for a market
Gold can be a fantastic technical market so pick the levels to trade from
