Gold has extended its losses tot $1320 after touching a one-month high of $1349 in Asian trading. The turnaround in gold threatens to form a bearish engulfing candle on the daily chart.
Yesterday’s close above the 55-day moving average (for the first time since November) encouraged the bulls but a fresh round of selling is underway as the dollar finds better footing. What me might see is a classic ‘buyer’s remorse’ trade where gold retests the breakout of $1300 before heading higher.
