1 Dec 2014
Gold selling-off after Swiss gold vote fails
FXStreet (Bali) - Gold is selling-off for a 2nd day in a row, following the Swiss gold referendum vote, in which a clear rejection to endorse SNB's 20% reserves in gold was seen, as expected.
While liquidity remains very thin, an occurrence that tends to exaggerate moves, the market remains committed now to resume the bearish trend by printing new lows at $1,155.50, down over $10.00 for the day, after losing almost $30.00 last Friday, as the market priced in a 'No' int he Swiss vote.
Technically, with the broader downtrend context realigning with shorter term momentum, it looks as though the next bear target at $1,132.00 - Nov 6 low - is now clearly exposed, ahead of larger losses towards $1,100.00. On the topside, only a recovery above $1,210.00 could alleviate bull's pain, although as long as below $1,260.00, the mid term bias should remain clearly down.
While liquidity remains very thin, an occurrence that tends to exaggerate moves, the market remains committed now to resume the bearish trend by printing new lows at $1,155.50, down over $10.00 for the day, after losing almost $30.00 last Friday, as the market priced in a 'No' int he Swiss vote.
Technically, with the broader downtrend context realigning with shorter term momentum, it looks as though the next bear target at $1,132.00 - Nov 6 low - is now clearly exposed, ahead of larger losses towards $1,100.00. On the topside, only a recovery above $1,210.00 could alleviate bull's pain, although as long as below $1,260.00, the mid term bias should remain clearly down.