Gold returns to key support but strong USD threatens
The combination of a slightly stronger dollar tone, higher US bond yields and solid risk appetite kept precious metals prices on the defensive on Monday. Silver dipped and has broken support at $19.00 per ounce while gold sank further towards key support near $1,300.
Once 1st target is reached take partial profits and reset shorts on a reaction back to $1,300. A further drive lower show target $1,265-70 before a final swing to $1,252.
Entry: Sell a break of $1,300/oz
Stop: A move back above $1,325
Target: Early target of $1,287, $1,267 & $1,252
Time horizon: 2-4 weeks
Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more
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