22 Dec 2014
Gold: Moves fundamentally lower away from 100 DMA
FXStreet (Guatemala) - Gold has dropped out of the sideways ranges formed just sub of the psychological $1,200 level and has plummeted to meet November’s support.
Besides the numerous technical levels, such as falling back below 50% of the move up from the December low at the 1190.42, this is highly fundamental given the sheer momentum of the move within a string dollar environment.
With the technicals offering trigger points, such as crossing below the 100 hr MA earlier in this month and now penetrating the recent support, within thinner liquidity, given the strength of the dollar and continued weakness in oil prices, the inflation hedge is falling off the cliff amongst speculation that Russia may well need to start selling its gold reserves as well to battle against deflation of its currency.
Besides the numerous technical levels, such as falling back below 50% of the move up from the December low at the 1190.42, this is highly fundamental given the sheer momentum of the move within a string dollar environment.
With the technicals offering trigger points, such as crossing below the 100 hr MA earlier in this month and now penetrating the recent support, within thinner liquidity, given the strength of the dollar and continued weakness in oil prices, the inflation hedge is falling off the cliff amongst speculation that Russia may well need to start selling its gold reserves as well to battle against deflation of its currency.