Gold Prices To Test $1,280
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Gold continues to be under pressure and now appears destined to reach the lower end of the trading range, which is $1,280. After being under pressure on Monday, gold recovered much of its losses to close back above the $1,290 level.
This morning gold is once again under pressure and certainly looks to be headed lower. The dollar is weak as well, which shows that there is not always a correlation between gold and the dollar. The pattern shows weakness and the sellers are in control.
If there is any good news for gold and silver, the lack of volume and conviction to the downside indicates that this recent sell-off is due to a lack of interest. Typically, in dull markets, equities drift higher and commodities such as gold drift lower, which is exactly what we are seeing. We remain long-term bullish, short-term bearish and will watch the action around $1,280.