Gold: Technical & Fundamental SHORT to $1420Gold recently held the broken support as resistance at $1475 and moved lower well. There is an indication that it could slide through the support structure immediately at $1457 and then $1445.
Both Fundamentals and Technicals show a weaker gold market.
The wicks that formed at the $1475 resistance mean that the sellers are strong and not to mention the volume on the swings lower was strong than any rally. The market has recently formed a month-long downward channel that we expect to hold and break to the downside. The bottom end of the channel and target is $1420, below that a slip through could bring gold down to $1380.
From a fundamental standpoint, the gold price is correlated inversely to the USD. The USD price movement is based on the Federal Reserves Monetary Policy.
The Fed no longer has a mega dovish stance, and just because of that in the short term we can see a stronger USD into the new year. This puts downside pressure on the gold market. Helping the bears come in on strong volume.
