Volatility breeds contempt
It's been a wild week for gold traders and that just might help to push them to the sidelines into the close.
Keep an eye on gold at the moment as it nears the lows of the session. It's down $13 to $1940. It's been a quieter day but nerves are still frayed and sometimes the easiest thing to do is cash out.
Intraday support spans down to $1938 but it could get ugly on a break lower.
On the daily chart, yesterday's rebound stalled out at the 50% retracement of the drop from $2075.
That's a bearish development and I think it's time to be cautious given the reversal this week in Treasury yields and the cloudy outlook on US stimulus.
