Gold Headed Back To Support
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Featuring views and opinions written by market professionals, not staff journalists.
Last week’s great rally in gold is just a memory as gold heads back down to its support level. The excitement from gold heading higher every day last week has now turned into the fear that it may go back to the lower end of the range.
Gold was lower on Tuesday and is lower again overnight into Wednesday morning. The congestion period is always the toughest for traders, as the markets have a lot of starts and stops and false breakouts in both directions.
This time is no different as both silver and gold churn in a range. Both look to be headed to the lower end. With the dollar near the lows, you have to ask the question -- why hasn’t gold broken out to highs? The answer is simple” -- there is too much central-bank manipulation, and expectations are the dollar will break out to the upside, putting pressure on the metals.