Tuesday, November 17, 2015

"Gold Slumps to 5.5-Year Low as U.S. Dollar, Stock Markets Rally"

Following up on yesterday's "It Appears Gold Is Going To Test Its Multi-Year Low".
December futures currently $1068.5 -15.10
From Kitco:
(Kitco News) - Gold prices dropped to a 5.5-year low near midday Tuesday, pressured in part by rallying U.S. and world stock markets. Traders and investors have reckoned the terror attacks in Paris are not going to influence their trading decisions--at least not at this time. The "risk-on" mentality in the market place is bearish for the safe-haven gold market, as monies flow into the competing asset class: equities. The other bearish element working against the gold market bulls recently is the strong rally in the U.S. dollar index, which on Tuesday hit a seven-month high. Importantly, the drop to a new multi-year low in the gold market has produced significant longer-term technical damage. Now the door is opened to a challenge of major psychological support at $1,000.00 an ounce in the coming weeks or few months. February Comex gold was last down $17.80 an ounce at $1,066.30.
Earlier at Kitco the slightly longer:
Gold Slips Back to Near 5.5-Year Low as U.S. Dollar Index Continues Ascent

As I said in "It Appears...":
...$1082.80 last, $10.50 above the five-year low.
There is no chart support until the big round number, $1000, where the 2008-9 resistance becomes support on the way down....
From FinViz: