Sunday, October 08, 2006

Gold corrective journey



After breaking the triangle, gold tested the first support I was discussing in a previous post, at around 575, then returned to the base of the broken triangle which strongly rejected it down through the 570-575 support area, opening up the decline towards the second significant support located around 540.

The weakness in commodities caused probably by the apparent American economic slowdown will keep the lid on any gold bullish bias in the near future and I think we will not see gold prices above 600 anytime soon.

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