Pro: Key Levels to Watch On Gold
iiTrader Founder & Chief Market Strategist
Gold bugs get swatted and silver is treated like the red-headed stepchild.
Both of the metals markets breaking key levels. Quite frankly, they may have completely broken down short term. Gold's bullish expectations from Friday have disappointed as this market is now trading through $1, 750. Support levels below here do fall at previous lows which come in at $1, 729.00.
I believe the decline in metals was initiated by dollar strength, which tested above the 80 level overnight. However, the dollar is now trading back to Friday's closing range just above the 79.70 level.
Gold and silver need a catalyst to engage traders to bid this market at these levels.
So what's the next move?
A hold against the previous low in gold at $1, 729.00 will be crucial and only a close back above $1761.10 will reignite a bullish momentum.
Bottom line: I am buying the first test of my support I think it is oversold (intra-day). That means I'm getting in at $1, 730.