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Breakout Or Disappointment

Commentaries & Views

For the last 10 days, gold has been in an uptrend inside of a consolidation pattern. The question is: Will gold finally break out to the upside or will it just be more disappointment?

There is no obvious answer. Through all of the high volatility in the equity markets, gold has been unable to break out to the upside, as buying has failed on a couple of attempts to do so. The pattern being formed right now is critical to the next big move in gold. If it doesn’t break out from here, it could be headed lower.

Gold is now in an ascending pattern and is poised to break out to the upside; however, with a higher dollar and investors feeling a little riskier, failure could be upon us. There is a lot of uncertainty in the worldwide economy, which should be bullish for gold. The question is -- breakout or disappointment?

Keep those stops tight.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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