Gold’s Downturn Could Get Worse

The precious metal will face additional challenges in the days to come.

Nervous Sentiment Prevails in Gold

Gold has suffered a serious downturn the past week and a half. A quick look at a mid-term chart reminds us the precious metal was testing high water marks approximately ten sessions ago.

The commodity is now near 1310.00 U.S Dollars an ounce as U.S Dollar strength causes nervous sentiment to mount.

Gold’s December 2017 Support Challenged

A long-term chart of Gold clearly shows the channel it has practiced since late December of 2017 is being challenged. A critical support ratio is 1300.00 Dollars, and if this mark falters it could set off alarm bells.

The precious metal may face additional tests in the coming days as the Federal Reserve’s monetary policy statement gets released tomorrow, and key wage figures come from the States on Friday.

In the short term, we believe Gold could be negative. The mid-term and Long term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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