The gold price has found strong resistance today at the $1,320 mark as it did in yesterday’s trading session and has pulled back and now looks to be heading down towards yesterday’s resistance point of $1,308.
The Dow Jones index tumbled again yesterday by over 1000 points which should have been a boost for gold but this failed to eventuate and instead investors once again chose the US dollar as a safe haven over gold which on the surface looks like a big warning sign.
If we look at past stock market corrections, gold has benefited immensely as a safe haven so something is definitely different this time around and if the stock market suddenly stabilizes there is bound to be even less interest in gold and the potential for further losses is a real possibility.
Should the resistance point of $1,308 be broken over the next few trading sessions there is little support remaining and we may see investors leave the precious metal in droves.
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