US dollar rally cripples gold
Gold is still up $125 on the year but it doesn't feel that way. Most of the gains came in Jan/Feb and it peaked in July shortly after the Brexit vote but it's been downhill since.
Gold prices have fallen $120 since election night as the market piles into US dollars and equities. Safe havens like bonds, the yen and gold have been battered.
The drop today knocks out the crucial $1200 level that had acted as a springboard in May and might have been a potential double bottom. Instead, there is now a dearth of technical support below.
Goldman Sachs is highlighting the 61.8% retracement of this year's rally at $1172 but beyond that there is next-to-nothing.
If you look more broadly, the post-Trump election moves are the kind that everyone hates because they didn't see it coming. Those are the kinds of trades that go further and last longer than anyone anticipated.
