Gold is down $22 to $1285/oz after an upbeat non-farm payrolls report pointed to the chance of a taper in December.
Technically, the decline breaks the 61.8% retracement of the late-October rally. The next layer of support is the trendline at $1268 followed by the October low of $1251.
Gold daily
The ECB rate cut decision was good news for gold yesterday but it was unable to rally. Now, a Fed taper is beginning ot look more likely. Aside from potential bounces on oversold conditions, I don’t see a reason to buy gold or cover shorts until the October lows.
I’m short myself and I have been for a few weeks.
