Gold Taking Hits as Worries Mount

Gold has continued to come under intense pressure. The past two weeks have proven to be tough for the precious metal as global equities and the U.S Dollar both rally. Muted inflation rhetoric from central bank leaders has also hurt Gold’s value short-term.

Gold’s Value Knocked Down

Gold has been punched in the gut the past two weeks and gone lower. The precious metal as of trading early today is near 1270.00 U.S Dollars an ounce.

Gold has not held support levels and may continue to be pushed lower, particularly in the midst of the global stock rally and strong U.S Dollar.

Early August Lows Being Approached

The 1255.00 U.S Dollars an ounce level looks to be a significant support level. If the precious metal continues to falter its mid-term strength could face a test of early August values.

Gold has also been sold as central bank leaders continue to bang a drum and say inflation remains muted.

Momentum Enticing Traders

Gold certainly had a springboard for buyers in the summer as its value climbed. While the near term looks awkward and may continue to see selling, long-term speculators may continue to be patient if they believe the precious metal will reverse higher.

Gold’s recent wave of selling, however, may prove enticing for traders who like to follow momentum.

In the short term, we believe Gold may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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