Earlier break in gold completes retracement
I wrote about gold earlier as it was testing the Asian low.
"Watch for another round of stops if the earlier low of $$1258.17 breaks. It would target a drift down to yesterday's low of $1251," I wrote.
After an hour of consolidating above the Asian low, gold broke down as the dollar caught a broad bid. That sent it to $1252 before a $4 bounce. Another round of selling hit late in the day and the precious metal is trading at $1251 and has taken out the weekly low.
The dollar bid is likely to take a break as New York leaves for the day but watch for more selling tomorrow down to $1245, especially if the FOMC minutes are hawkish.
