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Gold Update: Gold Drops to 6-Week Low in Thin, Technical-Based Trading; Sell Stops Triggered
Tuesday December 18, 2012 11:32 AM
(Kitco News) - Comex gold futures have moved to solidly lower price levels and hit a fresh six-week low in late-morning trading Tuesday. The gold market started to sell off following news that U.S. House Speaker Boehner mentioned a "Plan B" on the fiscal cliff negotiations. That news was taken as a negative by the raw commodity sector, which saw some general increased selling pressure that spilled over into the gold and silver futures markets. Some fresh technically related selling pressure is also seen in the gold market Tuesday, as sell stops were triggered just below key near-term technical support levels, including the early-December low of $1,684.10. Price action in February gold is now scoring a technically bearish "outside day" down on the daily bar chart, whereby the day's high is higher and low is lower than Monday's daily trading range, with a lower last trade. Now, the gold market bears are targeting more sell stops located below important near-term chart support at the November low of $1,674.70, and also just below the key 200-day moving average on the daily chart, which comes in at $1,669.00 on Tuesday. February gold last traded down $13.40 an ounce at $1,684.80.
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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
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