Gold continued its bearish trend, and we already see a “dead cross”, a strong downward signal, in which the 50-day moving average crosses the 200-day moving average in a downward direction.
This is happening on the background of declining global equities amid concerns that trade and investment restrictions can hurt the global growth.
Despite of the trade concerns and increased demand for safe havens, contrary to all logic, precious metal prices continue to slide down
It looks like that the the Federal Reserve policy and the rising dollar will continue to expand pressure on precious metal prices, at least to the support of around $1250, where a large number of long orders are likely possible.
Chart: Used with permission of Bloomberg Finance L.P.
Trader Georgi Bozhidarov