Gold Extends Early Losses, Drops Below $1,200, as Technical Selling Picks Up
New York (Oct 30) Gold prices have slumped further in late-morning trading Thursday. Prices have fallen below what was key near-term chart support at $1,200.00, which triggered fresh chart-based selling, including sell stop orders being hit in the futures market. The gold market is still feeling the ill effects of a hawkish FOMC statement Wednesday, which in turn has boosted the U.S. dollar.
Now, very important longer-term chart support lies around the $1,183 price level. If that critical technical price point is breached on the downside, more serious technical damage would be inflicted, including opening the door to a potential major leg down in prices. December Comex gold was last down $27.70 an ounce at $1,197.40.
Spot silver is hammered down nearly 5% to $16.43, while platinum and palladium both decline more than 1% on increased volume.