Tuesday, November 14, 2017

One day after getting beat down to 200 day moving average, gold recovers strong on high volume

As the gold price continues to ping pong between a range, it appears that more volume is beginning to come into the market as we head towards the tail end of the year.  And while the price has been unable to burst through its 100 day moving average with any real conviction over the past four weeks, it has summarily bounced off its 200 day moving average floor every time it has been pummeled lower.

The last 48 hours has been quite a chaotic one in precious metals markets with massive volumes of 'paper' gold flushed in and out of the futures markets. This morning - shortly after the US open failed to spark a panic-bid in stocks - gold futures bounced off their 200-day moving average on huge volume (around $4.5 billion notional) breaking above the 100DMA... 
The last day or so has seen a plunge below the 100DMA (on 33,000 contracts - around $4.2 billion notional), then another flush to the 200DMA as Europe opened overnight (on 22,000 contracts - around $2.8 billion notional) and then shortly after the US equity open, a 35,000 contract ($4.5 billion notional) rip higher off the critical moving average... - Zerohedge

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