Gold Reverses at the 50 SMA After Positive Economic Data from US
GOLD has been trading on a slight bullish trend since early last week, following the big decline in the first two weeks of this month. But, the uptrend has been pretty weak, compared to the bearish move in the first half of November, which suggest that this might be just a retrace before the next big bearish move.
Earlier today, Gold was climbing higher, but it found solid support at the 50 SMA (yellow) which has provided support once early last week. The price formed a doji candlestick below the 50 SMA,which is a reversing signal and in the next few hours Gold reversed down.
I’m beating myself up a little for not going short after the doji formed. But, who knew Donald Trump would comment that US and China are very close to signing the “Phase One” deal. That hurt safe havens and besides that, the US data came better than expected. Manufacturing and services PMI reports showed that these sectors moved away from contraction, while the UoM consumer sentiment indicator increased by more than a full point. So, the USD got a lift as well and now Gold has turned pretty bearish, having lost around $7 so far.
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