Gold price posts fifth daily loss in a row
San Francisco (Nov 3) Gold prices plunged, with spot posting one of the largest single-day drop in nearly two months, down to $1,114.34 an ounce a fresh 5-week low. The metal posted its fifth consecutive daily decline, and is close to completely erase its October gains, amid renewed speculation that the US Federal Reserve will raise its rates.
Gold technical perspective
“Spot gold ended the day near the mentioned low, and the bearish run seems far from over, given that the daily chart shows that the price has extended well below its moving averages and that the technical indicators present sharp bearish slopes, despite being near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the intraday decline has sent the technical indicators to extreme oversold levels, but they maintain their bearish strength, whilst the 20 SMA has accelerated further lower above the current level”.