Gold higher but the bounce has a dead-cat flavour

Gold up $10 on the day

Gold up $10 on the day

Is anything more hated than gold right now?

Sentiment has turned wildly against the shiny stuff as bitcoin and other high-flying cryptocurrencies steal its luster. Add in the technical break below the November lows and it’s tough to find a short-term bull.

Given the chart and the negative seasonals right now, I can see the point the bears are making but I think there’s case to be made for scaling in from $1700 to $1670 wit ha stop below. If that cracks though, we could be talking about $1500 once again even though that seems insane in a world of money printing and record deficits.

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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