Gold Price Under Pressure

New York (Aug 23)  Gold has had a nice run from the $1,167 lows from a week ago, rallying over $40 in the last week. It should be no surprise that there are sellers showing up here to take some profits. Gold has acted according to script for the last few weeks.

As gold continued its bear market, working its way down to the $1,180 level, the bounce came and took gold back to resistance at the $1,210 level. The action is very healthy and today’s selling pressure should be expected.

The keys to watch are $1,180 on the downside and $1,210 on the upside. Expectations are for gold to churn and consolidate 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 into play. Based on the recent action, we suspect the lows are in and we should see a consolidation pattern.

KitcoNews