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Same Old Story

Commentaries & Views

Once again, we saw an instant replay in gold when it failed at resistance on Wednesday. At one point, gold had rallied over $20 and was trading around $1,369 before selling off and closing at $1,356.

The failure at resistance is disappointing. We are expecting a huge move in either direction. With Wednesday’s failure at the top, this now brings the downside into play. The selling continues this morning with gold trading at $1,348.

Gold is still trading on congestion; the big move is still in play. If gold could have closed above $1,365, the big move would have continued up, but now it can go either way. Now, $1,330 will be the key level on the downside, and inability to hold $1,330 would lead to the big move to the downside.

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