Gold Holds Support At $1,680 But Downside Momentum Is Still Strong

Gold sliced through $1,700 and $1,680 yesterday briefly dipping as low as $1,667 but managed to close right at the $1,680 support level.

Gold has dropped 6.9% since 8 November when it made a multi-week high at $1,804.40 and the fall may not be over yet. As the chart above shows the stochastics show continued downside momentum (circled).

The next major support levels for gold are the 150-day moving average at around $1,645 and the 200-day at around $1,589 and it’s likely that we would see strong buying if gold were to reach either of these.

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