Gold technical analysis
Gold is trading lower for the fifth consecutive day and is at the lowest level of May.
The precious metal has been in a steady downtrend hitting a cycle high of $1303 on May 2. The selling has accelerated since the Fed took a more hawkish stance.
The $12 decline today broke the May 19 low and confirms the break of the uptrend since the start of April.
There is plenty of support below but nothing major until around $1212, which is the 100-day moving average. The March low of $1207 is also in play.
Gold is a popular trade once again with talk of helicopter money and debt monetization. Those long term themes make sense but in the short term, central banks aren't exactly the friend of gold. The ECB is sidelined and the BOJ isn't feeling the pressure to act after good GDP, trade and machine orders in the past week.
