Gold has fallen down a bit in the last few minutes. The precious metal fell below the 100 hour MA at the 1291.18 area and has seen some additional technical selling. Yesterday, the price fell below the 100 hour MA but quickly rebounded (see blue line). This is another key test of the sellers resolve (or profit takers resolve), at least in the short term.
Gold seeing some profit taking.
On the other side…remember there is another big risk event this weekend with the Greek election. So this likely just be some profit taking/position squaring ahead of that. Overall, the gold safety trade is alive and well. IF the SNB cuts rates again, the flow of funds should continue to find some safety in gold. So I don’t think it is time to sell for the long haul. This is likely just a correction.
