investmentwatchblog.com / by Dave / NOVEMBER 24, 2016
Gold fell -21.70 to 1190.30 on very heavy volume, while silver dropped -0.30 to 16.43 on heavy volume. A strong dollar rally through the previous high of 101.54 was the probable proximate cause of gold’s tumble today; the buck ended up +0.64 to 101.66, but hit a multi-decade high of 101.86 intraday.
The drop in gold/the dollar rally started right around the time of the Durable Goods report at 08:30, which showed an unexpectedly strong new order reading; new orders being the forward-looking reading of how durable capital goods are projected to be in the near future. My guess is, the commercials took full advantage of the dollar rally to pound gold; the “nobody cares” sense in the west probably caused the recent dip-buyers to panic out.
On the daily chart we see gold plunging through 1200 support; the 1200 level was a very important level to hold, and the close below this level suggests a much more intense decline is potentially ahead. If the Euro loses the 105 level, that strongly suggests a crisis in the Eurozone, and that projects a much stronger dollar rally and/or a further large drop in the Euro. Weaker Euro