Is this it?
This is getting painful. Gold’s sell-off since Donald Trump won the race for the White House last week has been relentless. Gold prices had toyed around the $2,600 level for much of Tuesday and Wednesday, before slicing through this area of support yesterday afternoon. The move appeared to set off protective sell stops, driving prices down further, breaking below $2,540 soon after the European open this morning. It has steadied a touch, but there’s no evidence that a bottom has yet been hit. So, investors should be prepared for more downside until the selling is exhausted. There’s some decent support around $2,520 to $2,480, and this will need to hold for the bulls to come back with any confidence. But the severity and depth of the sell-off means that gold is more oversold than it has been in over a year. This may be the best indication that a bounce is on its way. If so, then how this develops will provide clues as to whether this could be the start of another leg higher, or another opportunity to go short at more favourable levels.
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