The heavily bearish sentiment for gold continued to remain firmly in place once again last week, as the precious metal continues its stately progress ever lower, following the cataclysmic candle of the 9th November, when ultra high volume confirmed the heavy selling.
The AUDUSD pair initially fell on Monday but then found buyers to push the market higher.
The Australian dollar initially fell during the day on Wednesday, but turned around to form a relatively supportive looking candle.
As we highlighted the possibility on Monday, gold took a big plunge below the psychologically-important and support level of $1300 per ounce yesterday. The breakdown triggered further follow-up technical selling, causing gold to fall for a time below $1270 per ounce.
The AUDUSD pair broke higher during the course of the session on Monday, but gave back more than half of the gains from the early part of the session.
Gold and silver have started the new trading week, month and quarter on the back foot today. At the time of this writing, gold was trading at $1312 and silver was below $19.00 per troy ounce once again.
The technical support platform in the $1305 per ounce area came to the rescue of gold once again last week, with five consecutive days of gains, taking the precious metal from the gapped up open of Monday at $1313 per ounce to end the week at $1341.70 on the December contract.
As summer transitions into Autumn, there seems to be little change in the sentiment for gold, which continues to remain rangebound on the daily chart, still transfixed within the Brexit candle of late June.
The AUDUSD pair went back and forth during the course of the session here on Wednesday, as we continue to try to build up enough momentum to make a significant move.
The AUDUSD pair fell initially during the course of the session on Tuesday, but turned back around to form a hammer as we press up against the massive resistance at the 0.7675 level.
