Gold price fills gap...and erases gains

San Francisco (Nov 16)  After rising sharply at the beginning of the week, gold prices reversed and dropped erasing all gains. Currently the ounce trades at $1084.00, near the levels it closed on Friday.

Up and down, now what?

The yellow metal dropped to test multi-year lows last Thursday and found support at 1074.00. Then rebounded and today started the week with a bullish gap around $1089 and rose further on Asian hours hitting at $1098 the strongest level since November 6. Then gold started to pullback and dropped further during the American session. Recently bottomed at $1082.50, filling the gap.

The metal was moving away from the lows attempting to start a correction rally after falling more than USD 100 from October 20 to November 12. Technical indicators where favoring a recovery but after today’s reversal the outlook is less clear.

A consolidation on top of $1090 could boost prices to the upside, while to the downside, a daily close under $1080 could signal a test of the $1070 area.

Source: FXstreet