Today risk ‘off’ gold is being driven to a lower low on the big market euphoria. It is still in the short-term support zone but it has lost the SMA 50 as well. It appears that the negative RSI divergence is finally winning out. That’s the bad news.
The good news is that the trends are up and gold is probably readying for the next risk ‘off’ phase in the markets, shaking out those who knee jerked into the metal in March and April.
Try not to personalize it. It’s how markets – and psychology – work. Gold is on trend even if it drops all the way to the rising SMA 200 and/or lower support area. We were prepared for the correction to come about (from a miner-centric view), it is here and this is not the time to listen to bearish views on gold or the miners. Not unless the broad market euphoria is in response to something real, as opposed to sentiment.