Gold Takes a Breather
Gold finished today in the red, with the December Comex contract shedding more than 10 points after setting highs last Friday at 774. Despite today's setback, Gold is on a serious uptrend over the last few weeks. Both the 15- and 25-day moving averages are still below today’s close, though the 15-day average was touched at 752 this afternoon.
Several fundamental factors also may have had a hand in today’s sell-off. Long Crude Oil traders are in profit-taking mode, pushing prices down to 87.56. Though not low by any means, this is nevertheless a bit of a retracement from the lofty 90 level. The Dollar Index also had a positive day, with the December contract increasing to 78. With more bullish interest in the Dollar and Crude pulling back a bit, Gold traders may have found a reason to “flee from safety” today.
Mike Tosaw, Director of Education
