Gold Slammed To Fresh 10-Week Lows Below Key Technical Level

Tyler Durden's picture

What else should you do as Russian and Ukraine forces begin a serious un-de-escalation... sell precious metals with both hands and feet of course. The strength in stocks (whether channel-stuffed or not) is enough to make investors believe that we don't need no stinking Fed and that economy must be doing great all on its own. Gold is back below $1275, which SocGen warns could lead to $1233.

 

 

A close below 1275 will mean the extension of the correction to 1263/60 and possibly even 1233.

Gold has been evolving within a massive flat range since last June between 1400/33 and 1187/80.

Gold is breaking below the graphic support level of 1275, which has been acting as a median support in the main range. With daily RSI also breaking below a one-year support line a definite break below 1275 will extend the correction towards 1263/60, the 61.8% retracement of the last up move and 1233 (76.4% retracement).

 

Source: SocGen