Gold Struggles Continue
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After last Thursday’s reversal from $1,300, gold continues to struggle in lackluster trade. This morning it’s showing signs of life, pushing up to the $1,330 level. The overall pattern is lethargic as gold hovers near the bottom of the recent range. The pattern suggests that the lows are not in yet, and there is more work to do on the downside.
There are many factors that are affecting gold here but none more than the U.S. dollar, which is poised to take off to the upside. All this Fed and central-bank manipulation is creating a ton of heartburn for gold traders as they sit on the edge of their seats waiting for the next shoe to drop.
With the jobs number coming Friday, this promises to be an interesting week for gold and we should get a decision on the next big move by Friday. With gold in a trading range, it could go either way, but our expectations are a run to the bottoms, where we will be waiting to buy.
Keep those stops tight.