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Where Will Gold Sell-off End?

Commentaries & Views

From going up and testing recent highs, gold and silver have turned negative and the big question is when will the selling end? Obviously, there is no absolute or exact level, but by using the charts and the market footprint, we can make an educated guess.

Gold is falling and may need a lifeline to get up. Looking at the chart and the footprint, the bleeding in gold should at least pause if not stop at $1,280. The short-term trend is lower and failure to hold the $1,280 level brings new problems.

We have established that $1,280 in gold is a key level failure that brings $1,240 into play. We don’t predict markets; we play the probabilities, and for now gold has room to go lower. We expect a rally from $1,280, but if the longer-term rally is going to hold, then $1,280 must hold.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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