4.14.2016. After holding as support for five consecutive trading days last week, the 50 day moving average in gold finally gave up today. Gold topped out at $1,260 on Tuesday but sold off yesterday and has collapsed today more than $20. Even yesterday’s geopolitical tension in the form of two Russian fighter jets exhibiting aggressive flight maneuvers near a US military vessel in the Baltic Sea was not enough to stem the selling pressure on gold. The yellow metal was instead influenced by commentary on monetary policy by the Federal Reserve Bank of Atlanta President Dennis Lockhart. He remarked that June remains an option for a potential Federal Reserve rate hike but that modest improvements in economic data would be needed to justify it. The market took the statement as hawkish and gold was offered throughout the day as a result. The 50 day moving average at $1,232.50 is now acting as resistance. Support is coming in at $1,210.
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