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Gold Prices At Support

Commentaries & Views

Gold fell to support overnight and is holding steady. The action is no surprise, with the pattern in consolidation, trading between $1,245-$1,255 the last few days.

There is an extremely bullish pattern being built at these levels, known as the cup and handle. This pattern usually signifies a big breakout to the upside. Together with the overall action in gold, $1,275 should be around the corner.

After bottoming in August, gold has been climbing higher. The uptrend has created the bullish cup-and-handle pattern and should result in a breakout to the upside. We see nothing in the way of this move as all technical indications show there is underlying strength.

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