Gold Price Gets Hammered
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The amazing thing we learn and experience in markets is the thrill of victory and the agony of defeat. On Wednesday, gold buyers looked in full control and were in the process of pushing the metal through resistance and starting the next leg up.
However, a funny thing happened on the way to a bull run, and Thursday gold got hammered down almost $20. The action was really no surprise nor was the panic buying as the FOMO effect was in full throttle on Wednesday. We wrote that the rally should fail, and it did.
Gold is slightly higher early this morning; as I write it’s 4 a.m. EDT. The facts are simple -- the metals are still in a big consolidation range and we expect breakout attempts in either direction to fail. Eventually this pattern will end, but for now investors should stand pat and traders should look to sell the top end at $1,310-$1,320 and buy the bottom end at $1,280-$1,290.