Gold: Continues Downside Momentum After FOMC Minutes
Hugo O'Neill | Apr 10, 2015 04:52AM ET
Since 2011, gold prices have fallen from nearly $1,900 per ounce to below $1,200, although demand from top gold consumer India appeared stronger, while buying from 2nd consumer China remained weak.
Gold retreated for a 3rd straight session on yesterday session on a stronger dollar after Federal Reserve officials renewed expectations for an interest rate rise in June or even September despite recent weak economic data.
Gold fell but breaking below the 10 and the 50-day moving average and close in the red near the low of the day. The precious metal fell 2.45% last month and is in potential phase change from recovery to bearish. The Stochastic is showing an overbought market setting lower highs and price is making higher highs, signs that the upside may begin to get exhausted.
Expecting a downward move to a daily key level at 1,178.35 on a break below previous day low at 1,192.54 (scenario 1) or a break below a daily key level at 1,178.35 could throw the yellow metal to year low at 1,141.65 (scenario 2).
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