Gold Prices At Support
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Featuring views and opinions written by market professionals, not staff journalists.
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.