Gold futures have suffered back-to-back losses and yesterday had the sharpest daily decline in almost six weeks! The dollar and Treasury yields both jumped higher following data that showed a nice rise in U.S. retail sales for August.
Ross Norman, chief executive officer at Metals Daily spoke in confidence in the gold market and how it “has been light, vulnerable even, especially with the broad commodity complex enjoying another rally — not to mention bitcoin,” he said.
“Clearly, the unexpectedly strong U.S. retail sales have boosted the dollar and gold has corrected sharply lower, it appears the move lower has been accelerated by stops being triggered and is now touching support at $1,750.The path of least resistance looks to be lower and I suspect the bears will be hammering on the support levels to test the resolve of the bulls,” he concluded.
It is hard to disagree with that statement even though the most adamant of Goldbugs are shrugging their shoulders as the prized metal has yet to make a substantial run past $1,800 that everyone was expecting to happen weeks ago.