Gold falls despite the more pessimistic risk mood in European morning trade
The divergence between gold and bond yields is getting quite obvious now as gold is the one not sticking to the risk-off script in markets this morning.
Gold is now down by 0.4% as price slumps to its lowest levels on the day, challenging both its 100 and 200-hour moving averages:
The commodity got a brief spike higher after keeping more rangebound over the week-and-a-half, but is now being dragged back to rest between $1,540 and $1,560 again.
The risk for buyers now is if price falls below the 200-hour MA (blue line) @ $1,553.40 as that will see sellers capture near-term control. Further support is then seen closer towards $1,540 and the 14 January low @ $1,536.
For buyers, more work needs to be done as they ultimately need to firmly break above $1,560 - more specifically the 10 January high @ $1,563 - in order to build more momentum back towards the upside again.
