Sasha Singh
All posts from Sasha Singh
Sasha Singh in Sasha Singh,

Gold Testing Key Support at 1231.83,

Gold is the only one in the market today which is reacting opposite to US dollar and extending losses following the release of upbeat data but not as expected. University of Michigan just released the Consumer Sentiment Report which also posted strong numbers.

"The official data showed that the preliminary September reading of consumer sentiment index rose to 84.6 which is the highest level since July 2013 from the previous reading of 82.5 in August. Economists were expecting the index to rise to 83.8."

XAUUSD : Daily Chart

On the daily chart, the commodity declined and currently testing the key support at 1231.83. If it continues to decline below it, the next nearest support level is at 1217.56. The 50 day SMA is also contracting towards the 100 day and 200 day SMA signaling a downtrend continuation.