Today saw further evidence of the Fed's willingness to raise interest rates next month, and thus further strength in the US dollar. Gold initially stood tall in the face of this negative (for it) news, but caved in earnest as the day progressed. Down $20 nearing the close, gold sliced through two consecutive areas of support and appears to want to go lower.
Here's a very short-term chart of GLD, gold's ETF that trades in New York. I've drawn in blue horizontal lines on the main chart to show those areas of support that have now been taken out, and also a thicker blue line that so far is holding. A break below that level, $120.08 for GLD, would confirm the new downtrend that the lower MACD indicator is already showing (the maroon oval). But remember, this is only in the near-term, and such a downtrend would represent an opportunity to ... Log in or subscribe to continue reading.