Stronger USD and more upbeat US economic data have brought gold prices to around USD 1305 per ounce where stop selling orders were triggered and accelerated the move down.
Should the move stop around current level , in fact in the USD 1280-1300 range, this MIGHT represent a good entry point for long term buyers but one must be clear that the crossing of the USD 1280 level would see a continuation of the selloff. In order to reverse the damage to the technical picture of Gold Chart a quick bounce above USD 1305 is needed.
BUY GDX – GDXJ – NEM – ABX on a bounce above USD 1305. DO NOT buy if the current move down is not quickly reversed.
Silver is also sharply down (-3% @ USD 18,30) but still holds June supports at around USD 18.