Congratulations! Gold has just opened a new era... or, rather, reopened...
Gold fell below $1,700
Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that risk-seeking investors have turned to stocks. It’s hard to ignore the surge of S&P 500, NASDAQ, and Dow Jones. More and more traders and investors want to take part in this rally, so they quit their gold longs and switch to indexes. US ADP employment report released today showed that the number of jobs in the US private sector declined in may less than expected. That has also contributed to the positive mood and reduced the appeal of the precious metal.
What does it mean for traders?
Traders can profit in indexes for sure, but don't forget that short positions in gold are also possible. The price is currently testing the 23.6% Fibonacci retracement level in the 1,690 area. The fix below this point will open the way down to $1,670 and $1,645.
At the same time, remember that gold is a safe haven. With various uncertainties that torment the world, the long-term trend for XAU/USD is bullish. As a result, every time the asset reaches support levels, it is necessary to look for the signals of bullish reversal.
Finally, the return above $1,700 (if the break to the downside turns out to be false), will allow bulls to try to push the price back up to $1,715 and $1,725.
Monitor the situation and be ready to profit!
Australian Private Capital Expenditure will be out on Thursday at 2:30 MT time!
Oil jumped to March high, stocks are heading to record highs, while the US dollar is on the back foot.
News geeks get ready for the chain of US reports, which starts at 15:30 MT time on November 25!