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Gold Continues Churn In Tight Range

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(Kitco News) - Gold continues to behave constructively on a technical basis. Gold bounced off support at $1,292 last week but continues to churn in a tight range. We would expect the Fed to remain neutral to dovish at this week’s FOMC meeting, which should contain if not weaken any upward impulse in the dollar index. For traders who have stayed with our long trade at $1,282.50, we suggest raising the stop to $1,297 on a close basis, but look for a break of $1,312 on a close basis for a retest of the $1,322 area. Silver is showing some signs of life, with support at $15.20 and resistance at $15.45. Rhodium has risen to our target of $3,200 and the market is seeing good two-way volume at this level. We think rhodium may have further to go, but some profit-taking is likely. For traders who have enjoyed the ride from our buy call at $1,200, it may be prudent to take 50% off the table or at a minimum raise stops to $2,950.

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