Gold has run into some heavy selling after the US equity open, with prices falling $100.
The selling accelerated after the break of yesterday’s low of $4278.
There is no clear catalyst for the drop but gold is extremely technically overbought and there may be some market participants looking to take profits ahead of the weekend.
It’s way too early to say that gold’s parabolic move has busted. I’d imagine there will be plentiful buyers on dips at $4000 with perhaps some earlier support at $4090. I’ve been repeatedly surprised at how shallow dips have been in this incredible run up.
This article was written by Adam Button at investinglive.com.