“Markets typically move from trend, to indecision, to trend,” said John Kosar, director of research at Asbury Research. He said the sell off into mid April was the “trend,” the stabilization in prices between then and through yesterday was the “indecision.” “Today was a breakdown from congestion we’ve had since April,” Kosar said. “The market has collectively decided that the larger decline is resuming.”
He anticipates some minor support within the $1,250 to $1,260 range. He said gold could start another bounce from there, but bulls shouldn’t get too comfortable buying at those levels.
More detail, charts and a data table pertaining to gold is available in our June 21st report entitled Gold: Buy The Dip, Or More Weakness Ahead? (access requires subscription)
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