The gold bears finally won. After weeks of trading in a narrow range, gold finally broke down, falling 2% to USD $1264oz. News China is looking to launch a global gold exchange in Shanghai (which many would see as bullish for metals seeing the incredible physical demand there) was overwhelmed by technical selling and emboldened shorts, who looked at a range of headline beating US data to push metals lower. Slower net gold imports into China might also have been a factor, In terms of where too from here, and its looking likely that gold could re-test the June and December 2013 lows around USD $1200oz, wiping out all the year to date gains that had made it one of the best performing asset classes of 2014 so far. More details here (VIEW LINK)
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