Like Magic, Gold Hovers Around $1,280
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The magic of the patterns continues as gold hovers around the key level of $1,280. After being under heavy pressure Tuesday and Wednesday, gold has found its way back to the $1,280 level once again and is still in position to go either way from here.
When looking at the price action, a case for gold to move in either direction can be made. The gold bears will say that gold is breaking down and lower prices are coming, while the gold bulls will look at the higher lows that gold has made the last few days and look for higher prices.
We will continue to call this a consolidation pattern, remaining non-committal and believing that there is not enough information to make a determination in either direction. Although we are looking for higher prices later, we will not commit new money at the current levels.