By Fast Brokers – Gold is experiencing a huge selloff today and we currently can’t find any reasonable explanation. Gold has crashed below all off our uptrend lines, leaving the comforts of its strong trading base behind. While the Dollar is appreciating across the board and the S&P futures are sinking, all over movements are not nearly as protracted as gold’s. Is gold sending a message of a large, pending pullback in U.S. equities and rapid appreciation of the Dollar, or are we just witnessing institutional/governmental trading? We believe gold’s large pullback today could either be the result of investor anxiety in the wake of CFTC meetings on curbing commodity trading, or a governmental shift of reserves. Most interestingly, gold has not experienced a large spike in activity as one would expect with such a huge movement. Gold may cut its losses around $935/oz since the bottom of the 7/15-7/20 range should provide some immediate-term support. Regardless, this is an eye-opening move and we will keep our eyes on the headlines for any evidence as to why the precious metal is tanking.
Present Price: $934.90/oz
Resistances: $936.79/oz, $938.49/oz, $940.54/oz, $942.58/oz, $945.82/oz
Supports: $934.23/oz, $932.70/oz, $931.33/oz, $929.63/oz, $927.76/oz
Market Commentary provided by Fast Brokers.
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