Gold futures compressed yesterday at a daily scale and may be breaking down today after an early failed rally:
If this break is confirmed by the close – that is the price closes below yesterday’s low – we advise short selling. This fits our overall view that equities will rally, leading to the usual current correlated moves, one of which will be weakness in precious metals.
If you wish to anticipate the break, go ahead, but be prepared to ‘stop out’ quickly if the market rallies on the day.
