The Bearish Momentum in Gold Likely to Resume Soon, As the Pullback Seems Complete
Gold has retraced higher today after the big decline last Friday, but the 200 SMA is doing a good job in providing resistance
GOLD has been trading sideways in the recent weeks, but with a bias towards the downside. Although, we saw a surge higher at the beginning of last year, when the US ISM manufacturing report increased fears again for a deeper economic slowdown in the US.
But, on Friday we saw a bearish reversal and Gold lost more than $20, after the positive US employment report and the improvement in consumer confidence. The USD turned bullish and the sentiment improved, which is a negative thing for safe havens, such as Gold.
Today though, we saw Gold retrace higher on the H1 chart, as you can see form the image at the top. Comments from North Korea warning that Kim’s thoughts on Trump can change hurt the sentiment a little, which helped in this pullback higher for Gold. But, the 200 SMA (purple) turned into resistance on this chart and we decided to open a sell signal up thereafter a big hammer candlestick, which points to a bearish reversal.
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