Gold falls to a two-week low as China settles in for holidays

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The period of seasonal strength for gold usually ends with the start of lunar New Year holidays and here we are. The seasonal trade didn’t work great this year but I strong suspect that’s because it was swamped by hawkish shifts in monetary policy expectations due to good data.

Gold edged through the January low of $2013 but has since rebounded so that will be a level to watch on a closing basis. Below that, there is support down to $2010 and at $2000.

gold hourly

Given where seasonals are now, I don’t see a reason to buy gold until/unless US economic data stumbles.