Gold tested and rebounded from the 200 DMA which has proved to be good support in previous market bull runs (2009-2011).
The current pull back was on the back of a strengthening of the US$ and renewed focus on US rate rise. This is likely to unwind next week after a less than blockbuster US NFP. QE tapering from EU was also a false statement.
Clear case where fundamentals match the technicals on this occasion.
Short term traders should profit from near term retracement, while longer term traders can hold until either the technicals or fundamentals brake down.
The current pull back was on the back of a strengthening of the US$ and renewed focus on US rate rise. This is likely to unwind next week after a less than blockbuster US NFP. QE tapering from EU was also a false statement.
Clear case where fundamentals match the technicals on this occasion.
Short term traders should profit from near term retracement, while longer term traders can hold until either the technicals or fundamentals brake down.