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Buyers Hold Up Price Of Gold

Commentaries & Views

After Wednesday’s downside reversal in gold, the selling continued Thursday. By 8:30 EST, the sellers were exhausted, and buyers were back pushing gold back over the key support level of $1,310. If there is a concern, the fact that gold made a lower low during the sell-off would be it.

Thursday’s rally was on good volume, which makes us believe that support will continue to hold. The pattern suggests that gold has more room to run on the upside. As of this writing, gold is pushing the highs from the other day at $1,321.

There are a couple of things that will happen from here -- the consolidation pattern will continue and gold will fail around the $1,321 level and test the bottom end of the range, or gold can break out and be on its way to $1,350.

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