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Gold sees further liquidation as oil leads the way

Since my last update gold has come under further pressure and now fallen below $1,950. The move started to unfold yesterday, as oil seemed to take another risk positive based move lower. That had an impact on gold for sure and seemed to deliver more forced selling once the 21 day moving average gave way at the second time of asking. Gold closed in the US last night below that level too, ending the US session at $1,950.20. It has dropped further today, reaching a session low so far at $1,944.83. The next supports of technical note could be at $1,934.57 and $1,933.43. The latter price point represents a 38.2% pullback of the $1,810.51- $2,009.41 move. The first one is the 200 day moving average, now at 1,934.57. That could make that price area pretty sticky should gold get down there. On the topside the 21 day moving average is still rising fast and in place now at 1,964.30. The higher US bond yields right now today are not helping the metal either. Gold is just now trading $1,947.65
 

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