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20 Feb 2013
Gold hits fresh 6-month low
The yellow metal extended losses into a sixth consecutive day on Wednesday and broke decisively below $1600/oz, sliding toward its lowest in nearly 7 months before finding support while investors await the minutes of the latest FOMC meeting.
Gold fell further during the New York session and set a low of $1578.22 an ounce amid broad USD strength and soft market sentiment. At time of writing, the yellow metal trades around $1584/oz, where it is 1.3% below its opening price.
"Loss of 1600 handle increases downside risk towards critical 1530/20 support zone, multi-year range floor, as the price broke below double-Fibonacci support at 1590, Fib 76.4% of 1526/1920 and Fib 138.2% expansion of the wave from 1653, with immediate focus at 1582, Fib 161.8% expansion", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Dominating negative tone on lower and larger timeframes studies, keeps the downside favored, as indicators continue to point lower, despite oversold conditions".
Gold fell further during the New York session and set a low of $1578.22 an ounce amid broad USD strength and soft market sentiment. At time of writing, the yellow metal trades around $1584/oz, where it is 1.3% below its opening price.
"Loss of 1600 handle increases downside risk towards critical 1530/20 support zone, multi-year range floor, as the price broke below double-Fibonacci support at 1590, Fib 76.4% of 1526/1920 and Fib 138.2% expansion of the wave from 1653, with immediate focus at 1582, Fib 161.8% expansion", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Dominating negative tone on lower and larger timeframes studies, keeps the downside favored, as indicators continue to point lower, despite oversold conditions".