Gold drops back below $1200, but for how long?
Gold has dropped back below the crucial $1200 mark overnight, following on from a near 7% rally over the past month. Given the importance of that level, there is a chance we could see some selling come into play, with yesterday’s daily candle closing out as a shooting star.
For this bearish sentiment to have any wider relevance, we would need to see $1177 taken out, which remains some way from current price. As such, an hourly close above $1207 would be required for the bullish sentiment to persist. Until then, it may be prudent to be thankful for the gains we have seen already over the week and wait for confirmation that $1200 has truly been overcome.