Gold Can't Hold Rally
For the last few days, gold hastried to catch a bid to go higher, but each time it has failed. Since lastWednesday's high, gold has attempted to rally each day only to close lower.There seems to be a lot of waiting on gold, keeping the metal from breaking outto the upside.
Every news event that seemedpositive for the metals has resulted in a failed rally. Prices seem to behovering at the bottom end of a range-bound market. Typically, when a marketshould be rallying and it struggles, indications are that it is going lower.That would be the case for gold here. It has not benefitted from the weakerdollar or any other event that should have pushed it higher.
Expectations are at best a testof $1,300, if not below. There will be new-money buyers coming in; the onlyquestion is from what price. The next stop on the way down would be $1,300, butthe $1,240 level is in play as well. This is a great time to observe the marketfor a better footprint, looking for a level to buy or sell.
Keep those stops tight.
Contributing tokitco.com
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