Forex Trading: Gold downside reversal, selling continues

by Joe Oliver, Forex Trading-Pips

Forex Trading: The selling continues in gold this morning after yesterday’s downside reversal from record highs. Yesterday Shanghai Gold exchange raised margins on some of its gold forward contracts. The Hong Kong Mercantile Exchange also raised the margin requirement on its gold futures contract on Aug. 23 by nearly 26 percent. Investors are watching for potential gold margin requirement hikes from the CME Group

Holdings of the SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell by nearly 25 tonnes on Tuesday, their biggest one-day outflow since Jan. 25. CBOE gold volatility index is at its highest since April 2009.

Late longs are trapped in the market and whilst the trend still remains up, further selling is likely until margin call liquidation is complete and balance is restored to the market.

Forex Trading, Gold daily bars selloff continues

Forex Trading, Gold daily bars selloff continues