Gold Trying To Break Out
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After Fed day and gold’s big up move, it tried to follow through on Thursday before failing at resistance of $1,320. At the end of the day, gold closed at midrange but is once again rallying this morning. This pattern is the true definition of a consolidating market.
The general market action remains strong, with equities look poised to test the highs and commodities in general moving higher except for grains. The action in metals is bullish. Gold has made a higher low with the new range of $1,300-$1,320.
The metals have rallied nicely in the face of a stronger dollar, which shows how strong the metals are. The longer that gold churns in these levels, the bigger the next up move will be. Look for silver to start to follow the strength in gold and push towards the $16.20 level.