Things are really not panning out for gold so far this January, as the precious metal sinks lower in European trading today. It is now down over 1% today and it looks like sellers are leaning towards a push to $2,000 next potentially, if the technicals are anything to go by.
Gold (XAU/USD) daily chart
There’s still a trendline support at around $2,003 to get past but sellers are in the driver’s seat in the near-term now. And it’s not likely things will change unless bond yields start dropping or the market reverses the price action from last week for some other reason.
And by the looks of it, we might not get any such conviction until Thursday when the US CPI data gets released.