Gold Bearish Reversal Breaks Short-Term Trend Line

Gold’s breakdown has violated the minor trend from December into the week’s end. It has recovered some lost ground but remains below the trend break.

Gold Trading Update: Short-Term Bearish

We has mentioned that as the US Dollar up-trend continued with interest rates, this could have a negative effect on Gold futures prices and precious metals. This looks to have occurred as gold futures broke below key trend line support on Wednesday into Thursday.

Note that this goes completely against what the new thinking was on Silver and precious metals being the new “Go-To” after GME’s success.

Given the strongly negative commercial hedger positioning while large speculators were bullish in CFTC positioning, it’s thought that Thursday kicked off a decline which could move back to new lows before any bottom and rally.

Gold Futures “daily” Chart

gold futures trading reversal break down lower decline chart february 5

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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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