I mentioned yesterday that gold's lack of movement in what should be a favorable environment (worldwide Central Bank liquidity experiments) would be quite concerning for gold owners. Today it's more of the same with the euro up 1/2 a percent v. the dollar and gold solidly red.
Gold Update: Gold Drops to 6-Week Low in Thin, Technical-Based Trading; Sell Stops Triggered
Comex gold futures have moved to solidly lower price levels and hit a fresh six-week low in late-morning trading Tuesday. The gold market started to sell off following news that U.S. House Speaker Boehner mentioned a "Plan B" on the fiscal cliff negotiations. That news was taken as a negative by the raw commodity sector, which saw some general increased selling pressure that spilled over into the gold and silver futures markets. Some fresh technically related selling pressure is also seen in the gold market Tuesday, as sell stops were triggered just below key near-term technical support levels, including the early-December low of $1,684.10. Price action in February gold is now scoring a technically bearish "outside day" down on the daily bar chart, whereby the day's high is higher and low is lower than Monday's daily trading range, with a lower last trade....MOREAlso from Kitco:
With Gold at the Bottom of the 11-Year-$1500-Gain Trendline-Channel Is it Time to Look at Triple Levered Inverse ETN's? (DGLD; UGLD)
Foreign Exchange: EUR/USD Approaching Major Resistance
The thing that stands out is the lack of upward movement in gold despite the buck's weakness vs. the euro....
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