by Alasdair MacLeod
Gold Money
Reflecting a modest recovery in the dollar, precious metals have been sold down in paper markets. In European trade this morning, gold was at $1823, down $42 from last Friday’s close, and silver was at $21.20, down 75 cents on the week.
Technically, gold’s consolidation from 1 February looks like a normal pull-back in a continuing bull market, with the gold price coming back to test its key moving averages. And for lovers of Fibonacci ratios, the price has retraced 62% of the rise from last November’s bottom. This is worth mentioning because traders use these technical factors for guidance.