by Przemyslaw Radomski, CFA
Gold moved lower early during yesterday’s session, but came back up later on and finally gold ended the session only less than $3 lower. Can we view such a reversal as a bullish sign? Not necessarily – a reversal should be confirmed by high volume and yesterday’s session wasn’t. Consequently, one needs to look at other parts of the precious metals sector for confirmations.
The above action, however, provides bearish signals, not bullish ones. Let’s start with the USD Index chart.