Gold's Roller-Coaster Ride
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Gold goes up, gold goes down, gold goes up again, and gold goes down again. That is the pattern that the metals are in now as they fight the consolidation pattern that they are in, preparing for the next big move.
Since August, the trend is certainly higher, with gold rallying more than 10% since then. Metals look to be building a lot of support at higher lows, indicating that there is more room to go on the upside.
There is a case to be made for gold to break out to the upside the next time it’s ready to move, but for now expect this market to churn between $1,280 and $1,320. Traders can look to trade that range, buying at the bottom end and selling at the top. Our expectations are for a break to the upside and the longer it hangs in the current range, the bigger the move will be.