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Gold Fails At Resistance

Commentaries & Views

Gold failed at $1,220 on Tuesday, falling $13 from that level to close at $1,207. The sell-off was no surprise, with gold reaching one of our resistance levels. The key here is today’s action and if the $1,190 level can hold.

As we commented, the best action for the metal would be some extended consolidation to form a strong bottom. That appears to be the case as gold looks to be making another higher low. The longer this consolidation pattern runs, the better the chances are that the lows are in.

The key levels are $1,220 on the upside and $1,195-$1,200 on the downside. Based on the pattern the last 10 days, it appears the bottoms are in and a run to $1,240 is next on the agenda. Of course, gold has to break above the $1,220 level to get there but the pattern is looking better, and probabilities are high that gold sees the next level.

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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