Tuesday, March 25, 2014

Will Gold Hold Support?

Gold seems to be spinning its wheels today, and may end up the day flat. That's interesting, considering that it ended yesterday right at support. Here's a chart of gold through yesterday's close ...
(Updated chart)

You can see that gold broke short-term price support. I've added Fibonacci retracements, which are common support levels watched by technical analysts.

Gold got sucker-punched with a 1-2 combo, starting with Fed Chair Janet Yellen's announcement last week that interest rate hikes might start sooner than anyone expected, and followed by yesterday's announcement of poor China economic news

On the other hand, the big, bullish fundamental forces are still in place despite the short-term scares. 

Stay tuned.

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