Gold dropped to $ 1630
Long-term US bonds continue to grow in yields. The process affects other markets as well. The decline was characterized by Tuesday for stock indices, which slightly moved away from record levels. The trend is similar for gold. The cost of a troy ounce on Tuesday fell by 1.5%, so trading took place in the lows of the range shown over the past eight months.
If we take historical measures, then we can talk about the breakdown of the trend that has been observed over the past two years. The fifth trading session in a row shows unsuccessful attempts by the yellow metal to return to the 50- and 200-day averages. An upward trend is still unattainable for gold.
From the point of view of technical analysis, the “cross of death” figure has emerged. It was last seen back in June 2018. Then the metal lost 10% in price in just the next two months. If we talk about an earlier period, then in 2016 a similar factor determined the price drop even by 13%.
Longs can view the current situation as a short-term fluctuation. Gold is now losing in price, but it may recover in the near future, which is likely to happen.
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