Gold Sell Off

Gold got sold off in yesterday's trading session due to fundamentally unknown reasons. The only probable reason is that from technical perspective Gold reached and breached the resistance level on the short term horizon at $1,295.

The precious metal went as high as $1,296.85 in the opening hours yesterday and bears took hold of the situation depressing the price to a low of $1,274 in the afternoon hours of the European session and just right before the opening of the US session.

Currently, Gold is trading at $1,280, a few points higher than latest low. Direction, however, remains unclear as price has been fluctuating in the range of $1,290 and $1,270 for the past few weeks.

If we can get a break above $1,290 and sustain price momentum we could expect Gold to close the year above $1,300.

Chart: XAU/USD H4