Gold Moves Down

Gold prices plummeted to new lows yesterday as the precious metal reached a low of $1,222. The safe haven asset was hovering around $1,240 yesterday before the sell wave occurred in the mid hours of the US trading session.

Gold broke the long term support zone that held the precious metal in an uptrend and now it seems price is headed to a double bottom at the psychological $1,204 level.

The upward trending channel that started in the end of December 2015 at the low of $1,047 is now invalidated and Gold bugs might be scared to go long. The spin off is yet to occur and we are yet to see how this will play out in the minds of money managers and market participants.

Chart: XAU/USD D1