Gold Retreats Intra-day, Is There More To Come?
Spot gold for December ended the session lower by $3.60 to $1873.30 an ounce. Earlier in the day, gold reached a new all time high of $1923.70 before reversing lower. Many traders and investors believe that it is the strong surge in the U.S. Dollar Index that helped to pullback gold back from the intra-day highs. While a stronger U.S. Dollar Index will usually cause most industrial commodities to retreat it usually has very little effect on gold these days. Many traders are anticipating another margin rate increase very soon from the CME Group. This is what most likely caused traders to flee from the precious metal after briefly making an all time high this morning.
The popular and highly traded SPDR Gold Shares(NYSE:GLD) are trading lower by 0.52 cents to $182.75 a share. The GLD traded as high as $185.85 shortly after the opening bell. Traders can watch for intra-day resistance on the GLD around the $184.00 level. Should The GLD sell off from its intra-day level there is a lot of chart support around the $181.20 area. Traders should expect GLD to be very volatile throughout the remainder of the trading session.