Gold basing at fresh lows, $1,300 comes as 50% reversion target
- Gold has fallen out of a techncial structure to below the psychological 1300 level.
- Gold is currently trading at $1,291oz, up from the $1,288.67oz low but down from high of $1,312.35oz.
Gold fell out of the rising channel and broke drop like a stone through a number of key techncial levels as a firth greenback curbs demand for the safe haven asset.
There have been some hefty sell orders going through on Commex, starting with yesterday's 7000 contracts which moved the market by $5.00 and today, more went through nailing down the coffin for gold bulls.
At the same time, stocks have stablised, despite a number of political uncertainties, central to law makers in the UK and Brexit uncertainties, notwithstanding the demand for dollar's on the back of geopolitical uncertainties - a thorn in the gold bull's side.
Gold levels
Gold has dropped out of the rising channel and below 1300, the 38.2% and the 23.6% Fibos of the late Feb highs and early March swing lows. The price is now testing the bottom of the cloud and is likely subject to a period of consolidation. 1300 is the 50% reversion target of today's move.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
