Are the technicals and the fundamentals setting gold up for a grim picture? The yellow metal has once again broken below the $1,300 mark and its 50-day moving average. Now it’s getting near its 200-day moving average, currently at $1,287.33 per ounce.
This comes as the China Gold Association reported that demand for gold in that country for the first half of year dropped 19 percent compared with the same time in 2013. Since last year, China is the largest retail buyer of gold in the world.
Ari Wald, head of technical analysis at Oppenheimer & Co., is watching two technical levels besides the 50-day and 200-day moving averages in gold. Though he has a hunch it will move higher, he is still neutral on bullion as he thinks trading in the metal will “remain sloppy.”
You can see the full “Talking Numbers” segment below:
Related: SPDR Gold Trust (ETF)(NYSEARCA:GLD), Market Vectors Gold Miners ETF(NYSEARCA:GDX), Barrick Gold Corporation (USA)(NYSE:ABX)