Gold Price Biggest Down Day of 2014

The price of gold experienced today the sharpest price decline of 2014. Although it was usual to see these corrections last year, they have been scarce in 2014. Gold futures in USD closed 2.18% lower on the day while silver futures in USD declined 2.24%.

The encouraging news for precious metals bulls is that gold and silver declined to the same extent. If silver would lead gold lower, it would have been worse.

The hourly price chart shows today’s waterfall decline. The gains built up over 3 weeks have been lost in a matter of hours.

gold_price_hourly_14_July_2014

The hourly gold chart shows the cascading fall of today, July 14th

 

The daily price chart is shown below. Purely from a chart perspective, it is interesting to note that gold was able to rally past the (minor) peaks of mid-April and early May. However, the rally, for now, stalled between the April and March high, approximately at the November 2013 peak. A head-and-shoulder pattern could be in the making, but given the solid chart formation it is more likely that gold will move higher in the weeks ahead, at least challenging the April 2014 peak.

gold_price_daily_14_July_2014

Daily gold chart shows no technical damage yet

 

If gold would be able to get past the September 2013 highs, close to 1450 USD, we could be sure of a new bull market. Only time will tell if and when that will be the case.

 

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