Wednesday, June 11, 2014

Gold may continue to fall

Societe Generale ( said that the gold price was predicted bearish in the aftermarket, but not to exclude the possibility of a slight rebound in the short term.
The bright release of U.S. non-agricultural employment report, on the one hand, boosts the dollar’s rise; On the other hand, it also makes risk rise sharply. Dragged down by it, gold price hit a low of $1240.90 in last week. Although it rebounded this week, I personally think that it is mainly driven by short-seller covering power, the rebound power is relatively limited.
According to daily chart, gold price presents five waves of downward trend, it is currently in the form of rebound in the fourth wave, if the upper rebound point can be located around pullback position $1260 of 23.6% early downward trend, if it is blocked, it would be expected to open a new round of downward, and not to exclude the possibility of retesting the lows in the year, suggest investors to go shorting on high.