Gold-Price Levels Defined
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Featuring views and opinions written by market professionals, not staff journalists.
Gold appears to have found a new trading range, which is $1,270-$1,290. The range looks solid as gold prepares to make its next big move. Gold’s next move is still undetermined as it rallies to the top and breaks to the bottom, with support and resistance both holding tight and making the war between the bulls and the bears a draw.
Eventually this pattern, known as congestion or the greatest time of uncertainty, will change and either the bulls or the bears will take charge. From a fundamental side, with the global economy failing and equities getting ready to break down, the bulls could take hold and break out to the upside, taking gold much higher.
On the other side of the gold coin, the trouble in equities didn’t just start today, and gold has had trouble breaking out to the upside, which means the bears could take over and break the metal, continuing the down move. Until further notice and all the reason’s gold should rally, it hasn’t. The move is lower until the pattern changes; for now, sell the rallies.