GOLD fell yesterday significantly by a reportedly $6 bln nominal sale ahead of the U.S. GDP announcement. The key commodity fell from near $1,294.00 to $1,285.00. Modest dollar strength after the GDP data continued it closed the day below the 50 day moving average and right on the 20 day moving average at 1283.50, a six day low low. This level breached the important 200 period moving average on the H4 chart and triggered a short position with target 1 at 1279.00 (14 period ATR) and target 2 1273.60 at the recent H4 low. The RSI is 34 and falling, the parabolic SAR remains negative and the widening Bollinger bands suggest further weakness. Resistance to further moves lower at the recent Fractal low at 1281.50. A reversal back over 1299.00 would negate this move.
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Senior Market Analyst
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