Can Gold Hold Support?
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It was just a couple of days ago and everyone couldnâ??t wait to buy gold as it appeared to be breaking out of resistance headed back towards the highs. We told everyone who asked that it was better to wait until the move confirmed that it wasnâ??t a false breakout and not let the fear of missing out get in their way.
Just three days later, gold is now testing the bottom end of the range and is in danger of breaking out to the downside. As we said at the top end of the range, donâ??t chase it up; let the footprints appear and be patient. We will say the same thing now -- let the move confirm before panic selling. More than likely, gold should see a bounce, although $1,280 is the ultimate support.
The big question â?? whatâ??s a trader to do? Whatâ??s an investor to do? The answer is simple and always the same -- traders should wait to react from the current move. Depending on the type of trader you are, you could be protecting profits from being short gold. Investors should stay the course. The very name of investor means these short-term gyrations should not cloud your mind or force your hand to panic.