Gold Drops Dramatically

Gold drops $57 in value over four hours (3.71%)!

It was no surprise that Gold fell dramatically yesterday from highs of $1535 to lows of $1478, following the recent falls in treasury bond rates, Trump’s tax cuts, central banks leaning towards easing and a slowing global economy.

The $57 drop in price (3.71%) hit the markets over a four-hour period came as the decision to delay tariffs and to put trade negotiations back on officials calendars in two weeks. As a reaction to this news, stocks loved it, but the price of gold didn’t.

This is because, in such circumstances, short term investors move away from risk-on markets. Normally this kind of candle patterns indicates indecision in the market place, however as gold has been trading at six-year highs recently, the move represents buyer exhaustion.

It's expected that investors will now turn their attentions to the stock markets and break-outs in Indices as is visible on the H1 Dow Jones chart.

Based on leading technical analysis, the gold is expected to continue to falter over the coming weeks.

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