Gold price below $1,800 per ounce!
Commenting on the gold price sell-off, TD Securities wrote the following in a note to clients: “Technically, a very poor day for gold. A new high, a lower low (below Monday’s) and a (very likely) lower close combine to form a bearish key reversal signal on the daily chart today.”
“There are a couple of things to note,” the firm continued. “On the one hand, we have been here before; the daily chart shows a number of outside range reversal signals in the past few months (at least) that have not had any traction with the markets. The ‘reversal’ has amounted to sometimes no more than a day or so of non-appreciation before the underlying bull trend resumes powerfully. On the other hand, the signals are tending to grow in size – and therefore technical stature. In theory, the bigger the reversal signal, the more impact it might have.”
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