Gold: The Moment Of Truth
Here we go again. Gold can't seemto hold a rally and is now testing the bottom of the range. Failure here couldbe a disaster for the yellow metal, which has struggled mightily since peakingon April 11 at $1,369.
Gold is now down almost 10% fromthose lofty levels, nearing correction territory. The $1,235-$1,240 area is theline in the sand, as failure to hold these levels would bring $1,200 into playand possibly lower. The trend is lower; gold is testing a double-bottom supportlevel.
Most of this beating has beendone on moderate volume with only one real washout day that gold has still notrecovered from. We expect support to hold but are very concerned about thetrading action. In the next day or two, gold better bounce or here comes$1,200.
Contributing tokitco.com
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