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Like A Gymnast, Gold Sticks A 10

Commentaries & Views

As we continue to track the pattern and the footprints in gold overnight Sunday and Monday, gold came down to $1,384.70, held and appears to be reversing today. As of 5:20 a.m. EDT, gold was trading at $1,396.

Our support level is $1,380-$1,390. Naturally, gold stopped right in the middle before attempting to rally. Monday was ugly and the sellers were relentless. However, as usually happens, gold found support, held and is now attempting to rally.

In all markets, there are the weak hands and the strong hands. Typically, when there is a big move counter to the overall trend, it’s a sign that the weak hands are getting flushed out of the market. That appears to be the case from Monday.

Remember, just because gold is higher today doesn’t mean there won’t be another attempt to take out the underlying support. Levels are a guide, but nothing is absolute. We are bullish and expect higher prices. However, like love affairs, that can change in an instant.

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.