Falls to trend line on the hourly chart.
The price of gold took a tumble ahead of the Comey testimony. The high today reached 1289.25. The low has extended now to 1271.33. We currently trade at 1274.
Looking at the hourly chart below, the price moved below the 100 hour MA at 1285.07 and the 200 hour MA at 1275.27 (that is close risk for shorts now). The low stalled ahead just ahead of trend line support at 1270.69. The low reached 1271.33
The precious metal was vulnerable, and it seems a large trader(s) took advantage of the technical levels and the key event to push the price to the downside. Yesterday, the price peaked just short of 1300. That helped contribute to the vulnerability as well.
A move below the trend line support would next target 1266.74. That is the 38.2% of the move up from the May low. The 50% of the same move, comes in at 1265.85.
US stocks have moved lower into his testimony as well. The S&P traded as high as 2436.21 - up about 4 points. It is down about 4 points now at 2429.50. The low extended to 2427.94.
