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Gold's Yo-Yo Trade

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As gold and silver move into the consolidation phase, we continue to see attempts to buy and sell. The rotation of new money will drive investors and traders crazy. This phase of all markets is also known as the torture chamber of investing.

After Friday’s rally in the metals, Monday brought some heavy selling, and this morning we see higher prices. The confusion that traders feel is the one of uncertainty.

The simple fact is the healthiest and most bullish action is to see what we are seeing now. Gold held the $1,280 support and is now churning, which should eventually lead to a breakout to the upside. Only time and the pattern will tell.

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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