As we wrote in yesterday’s technical report, Gold has managed to find support at the $1,290 level which are the double tops formed in the months of April and June. This is a significant event for the precious metal because a break down below this support level may have seen gold fall considerably further.
We don’t expect any big moves today and gold may test this key support level over the next few trading sessions before climbing higher and in turn keeping the bull trend intact. It seems as if the market has brushed aside the anticipated rate hike from the US Federal Reserve in December which is the main reason gold suffered substantial losses this week.
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