Gold May Drop Further in Near-Term

UNITED STATES September 13 2016 11:31 AM

NEW YORK (Scrap Register): Gold prices are starting the week relatively flat; however, one analyst sees the potential for further weakness in the near-term as prices failed to break above key technical resistance. 

Alex Thorndike, precious metals dealer at MKS notes that on three occasions prices have failed to break a short-term trend line established after the July highs following the Brexit referendum. 

He added that markets have to push above $1,350.90 an ounce to break the trend line. Friday's lower price action also took us back below the 50 dma for gold ($1337.70) and could signal additional weakness to kick off the week. 

The most active December gold futures last traded at $1,331.70 an ounce, down 0.2% on the day.