To better understand why Gold is falling while equity indices continue to grind higher, take a look at Gold priced in foreign currencies. While Gold peaked at record highs late last year, it reached new all-time highs (vs the euro and pound sterling) just last week. Since then, however, the yellow metal has steadily moved lower. This is due to the fact that the euro & pound have recovered vs several foreign currencies (including the dollar, yen & aussie). Daily bearish RSI & MACD divergence has triggered EURO/GOLD's retreat that now looks set to test 785.00 (near the 100-DMA & bull channel support). Meanwhile, Gold (in $'s) could find solace near the important RSI (9-period) base at 31, which provided support in December (2009) and last month.Friday, March 12, 2010
03/12 - Why Gold is falling
To better understand why Gold is falling while equity indices continue to grind higher, take a look at Gold priced in foreign currencies. While Gold peaked at record highs late last year, it reached new all-time highs (vs the euro and pound sterling) just last week. Since then, however, the yellow metal has steadily moved lower. This is due to the fact that the euro & pound have recovered vs several foreign currencies (including the dollar, yen & aussie). Daily bearish RSI & MACD divergence has triggered EURO/GOLD's retreat that now looks set to test 785.00 (near the 100-DMA & bull channel support). Meanwhile, Gold (in $'s) could find solace near the important RSI (9-period) base at 31, which provided support in December (2009) and last month.
