Gold Appears Set To Take Out September Low
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Gold prices have risen along with equity markets today. But nothing has changed fundamentally to suggest it is going to make a major comeback yet. So I reckon it will head lower again after this latest bounce.
Gold 2-Hour Chart
Indeed, the very fact it has bounced ahead of its prior low makes it look suspicious to me. It is like gold is trying to look bullish in order to tempt more bulls to buy gold near support before the market dumps the metal to take trapped long stops resting below the recent swing low circa 1615.
That area will be the downside target for the bears.
I could be wrong, of course, but with US 10-year bond yields well above 4% and the Fed continuing to remain hawkish, it is challenging to turn positive on gold in the short-term outlook and in this market environment. That’s why I am taking it from one level to the next and moving on to the next opportunity.
