No flight to safety in gold today
The price of gold has trade in a near $125 range today. The high for the day extended to $1575.45. The low reached $1451.55. We are currently trading near the low at $1459. That's down about $70 on the day. There is no flight to safety in gold today. The storyline is more toward selling to raise capital to cover losses and/or simply a technical breakdown. Investors are dumping.
Technically, the price to the downside has cracked back below its 100 day moving average at $1535.23, its 200 day moving average at $1499.83 and 38.2% retracement at $1495.96. I would suggest that the 200 day moving average and 38.2% retracement are resistance/risk for short.
On the downside, the low from November 2019 comes in at $1445.70. At the time that was the lowest level since August 2019. That is the next target. Below that level comes the 50% retracement of the move up from the 2018 low price. That level comes in at $1431.89.
