Talking Points:
- Gold prices[1] broke down on Friday morning, shortly after the US open and a day after the bullish-bump in the US Dollar[2].
- Gold prices fell below a trend-line projection that’s helped to provide support over the past month as prices hustled down to fresh 2018 lows.
- For a bigger-picture look at Gold prices, check out our 2018 Forecasts[3].
Fundamental Forecast for Gold: Bearish
Want to see how other traders are approaching Gold? Check out our IG Client Sentiment indicator[4].
Gold Prices Post Bearish Breakdown
Gold prices are taking a hit as we move towards the close of this week, currently down -1.89% so far on the day and -2.35% from the high set just ahead of yesterday’s ECB rate decision[5]. While Gold prices held support fairly well through the Fed’s rate hike on Wednesday[6], the ECB meeting the following morning produced considerable US Dollar strength as the ECB announced stimulus-taper in a very dovish manner. As rate expectations out of Europe fell, the Dollar ran-higher and this provided a bit of pressure to Gold prices through the latter-portion of Thursday trade. It was shortly after the US open this morning that the selling really got underway, however, and Gold fell down to a fresh 2018 low, finding a bit of support just north of $1,275.
Gold Prices Four-Hour Chart: Break of Month-Long Range After +2% Bearish Move
Chart prepared by James Stanley[7]
US Dollar Pulls Back from 2018 Highs – More Strength in Store?
The US Dollar put in
