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Gold Under Pressure - As expected

Commentaries & Views

After rallying for the past few days with a couple big up days, gold is coming under pressure this morning. This is no surprise based on the recent up move. It appears to be some profit-taking, which should continue for a couple of days.

The action is more consolidation than a sell-off and the level of support should hold. The key is the $1,300 level. Our expectations are that gold will trade between $1,300-$1,350 for the next few days. This should create a buying opportunity but based on the recent action, we expect the next move to be higher.

Fundamentally nothing has changed nor have the technicals changed. The pattern in gold has been consistent for months and there is no reason to expect it to change. After the consolidation pattern, we expect the rally to resume.

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