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Gold Prices In Trouble

Commentaries & Views

Just last Monday, the gold bulls were charging, and the yellow metal was trading above $1,300. The charge was higher, and the buyers were stepping in and couldn’t get enough. We warned every day last week that the rally looked like short covering and to watch the $1,280 level.

Fast forward a week and here is gold trading at $1,274, likely headed to the next support level of $1,240. There appears to be trouble, as the sellers have remained in control throughout. The levels have worked perfectly with valid footprints and clarity.

If gold fails to get back over $1,280 in the next day or two, there is a high probability and another big push down. The strong hands are the bears and until gold can close and hold $1,300, rallies will continue to fail, and lower it goes.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.