Gold Under Pressure
Gold has had a nice run from the$1,167 lows from a week ago, rallying over $40 in the last week. It should beno surprise that there are sellers showing up here to take some profits. Goldhas acted according to script for the last few weeks.
As gold continued its bearmarket, working its way down to the $1,180 level, the bounce came and took goldback to resistance at the $1,210 level. The action is very healthy and today'sselling pressure should be expected.
The keys to watch are $1,180 onthe downside and $1,210 on the upside. Expectations are for gold to churn andconsolidate between those levels as it builds a base before the next rally.Failure to hold support at $1,180 would be ugly and bring $1,130 or lower intoplay. Based on the recent action, we suspect the lows are in and we should seea consolidation pattern.
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