I posted earlier in the day how gold was trading to fresh eight-month highs on Russia-Ukraine tensions but amid the latest headlines, gold has sunk from a high of $1,879 today to $1,855 currently.
As noted earlier, what comes next for gold is dependent on the headlines and here we are now. As mentioned:
“But when all is said and done with the whole Russia-Ukraine situation, gold may be left hanging with few reasons to be too optimistic amid a backdrop of rising interest rates across the globe. That will be something to consider even if commodities in general are facing a rather strong bullish cycle potentially.”
Could this be where gold starts to drop the ball and we see a correction back to the downside?
There’s already a hint of a double-top pattern around the November high @ $1,877 and a break back below the broken trendline resistance around $1,838 would be a crushing blow to buyers in trying to hold on to any momentum.