Spot Gold - Suffered its biggest 2 days fall in 7 years falling from 2030 to 1862.
Is the Bull Market for Gold over ?
Gold weakness is caused by the 10 year US treasuries yield climbing a couple of basis points to 0.67% and a recovery of the USD. The dollar index is rebounding but only a move above 95.00 could trigger further upside. The fundamental cataylst for the gold rally remains intact with loose monetary policies expected to stay for a long time that will keep real yield subdued and negative should keep gold attractive. On the chart the Gold uptrend is intact after hitting a low of 1862 and staying above the 50 Days MA . Gold is likely to consolidate in a range between 1862 to 2015 for the next 1 months before attempting new high again . This is a healthy correction which will provide bullish investors another opportunity to ride the next leg up. However if Gold breaks 1862 , it could retrace to 1813 and 1741 which will be a good entry level