Is Gold Putting in a Head and Shoulders?
Rowan Crosby • 1 min read
If you’ve been tuned into FX Leaders in the last month you’ll know that we’ve been trading gold quite heavily and with good success. Since the North Korean saga has died down a touch and the USD has been gaining ground, gold has been bearish.
Technically it looks like we are making a head and shoulders pattern. Which is bearish also and confirms our sentiment.
That said, at the moment we are now sitting right on a support level. I would like to see a little bounce in the yellow metal before possibly taking on another short.
We also have US GDP out today which is something to consider as it will move the USD, if we come in either above or below expectations. The 200-SMA is also sitting just below us, which is bound to help prop us up.
However I think the chart looks increasingly bearish and the head and shoulders only confirms this.