Gold continues to trend lower
The metal has been trending lower over recent weeks, with the price breaking a number of trendlines along the way. We have seen another sharp move lower this morning, which brings about the possibility of a retracement higher in the near future. As such, it makes more sense to sell into rallies on the short-term.
However, from a medium-term perspective, this sell-off looks like a potential retracement of the $1227-1303 rally and as such, there is also a case for buying as a value play, given the 4/1 risk-to-reward for a move back to $1303 compared with a break below $1227.