Gold Prices Struggle To Break Above $1,290
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Here we go again, and we aren’t referring to the Dolly Parton song. Gold failed to break above the $1,290 level. After spending much of Friday above that key level, gold closed at $1,288 and now sits at $1,284.
This failure doesn’t mean all is lost and gold will go way down; it only means that the first test to change the current downtrend has failed. The bottoms could be in but the $1,275-$1,280 level must hold or we will look at the recent rally as another selling opportunity.
The big question is what do we do now? The answer is simple -- we observe patiently, waiting for a better footprint to guide us. Traders and investors don’t get rewarded for being first; they get rewarded for being right. Sometimes being right means you are watching and waiting.