On November 2, after a sustained gradual decline, panic sentiment was briefly released to some extent, and in today's early session prices staged a modest corrective rebound, touching a high of 3914 so far, still capped below 3925. The weekly commentary had advised looking to sell gold on rallies while it remained under pressure beneath 3925, and now that the metal has rebounded to 3914 and met resistance, this 3914 high could well become the intraday high, just as in last Friday's price action, when the early-session peak was struck and then followed by a steady grind lower, with prices continually breaking to new lows and further lows still to come after each new low was set.
Most market participants may be waiting to short on rebounds, but gold has been sliding continuously without any meaningful bounce, so waiting in that way is very likely to mean missing the entry, while the cautious are essentially left watching from the sidelines. This argues for actively taking positions, using 3925 as the defense level to sell, or selling off the 3914 high that has just printed — is that reasonable? One must understand that in a weakening market, the early-session high is often the intraday high. In short, the bias on the board remains short; one can get on board now to watch the downside momentum, and if the price breaks below the 3870 area and bounces slightly, sell again, looking for a further break to new lows followed by a sharp decline.
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