Reportedly 33 tonnes of gold were sold in the span of two minutes after a clear break of the technical support around the USD 1150 level triggered the sell-off, according to O’Hare. A stronger US dollar, stronger equities and higher US rate expectations are driving gold prices down, he adds.

O’Hare believes gold prices will remain under pressure as rallies have continued to be sold into and prices have trended lower, breaking the upward trending support line last week. With the price action signalling a clear break of the previous support area, he continues to look to trade gold from the short side.

O’Hare is looking to sell into a rally around USD 1130 with targets on this trade at 1085 and 1050 and with a stop at a break back above 1150.