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Gold Buyers Should Take A Rest

Commentaries & Views

Although we are bullish gold and have been tracking the pattern perfectly, our expectations are for a small sell-off in the next few days. The gold rally appears to be losing steam as volume starts to dry up.

The expected sell-off should be used as a buying opportunity, as the new bull market is not over yet. We are looking for the $1,300 level to hold as support and a run to $1,350 as our next target. The concern here is the declining volume, which is typically a sign the market will take a rest.

Today the Fed reports its decision on interest rates, which could be the impetus to push gold lower or create a blow-off top, which should fail. Until further notice, we are buyers in both gold and silver whenever they reach levels of support.

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