Fellas, GOLD just encountered a dramatic drop from $1,284 level to $1,277 trading level. Well, I haven’t come across any news or fundamental that could have triggered such a movement. Overall, the other assets and securities are trading calmly, confirming that the volatility is just gold specific.
In the absence of fundamentals, it’s obvious that investors’ sell-stops have been triggered. Gold was trading above 1,282 as the market was providing it solid support above this level over rising safe haven demand. Most traders had their sell-stops below this support, and it looks like the violation of this long-held support level has triggered this sharp sell-off.
Unfortunately, the market also knocked us out at stop loss of $1,280.18, but it’s good actually as we are out of the trade with a minor loss, while gold is floating around $1,277 and its next move is still uncertain. Anyhow, keep an eye on $1,277 and $1,271 as both these levels may support the precious metal.