Gold recently dropped very significantly BUT retail is looking at the charts and asking if that is it for the rally in #GOLD!
THE ANSWER.... HECK NO!
So why is #GOLD dropping and what does this all mean?
Gold is dropping for a few reasons, now I know you can get many reasons explained to you by fundamentalists but that all means nothing, truly! #GOLD is dropping because of a couple reasons.
When the institutions accumulate a long position it does not happen forever, so they must take profits at some point.
Could we see this coming? YES
The #CFTC report data was showing us strong signs that price was expected to drop. We saw some profit taking on long positions and short positions were starting to be added.
The markets move with each other. Some assets move first and then the others follow afterwards and this time what took place is we had the #EURUSD rallying upwards UNTIL it contacted MAJOR SUPPLY. This put bearish pressure on it which fueled the move lower with #GOLD.
THIS IS WHAT HAPPENED! If you didn't know this, this is a problem. You need to know how this market works.