How Will Gold Price React To Friday's Reversal Or The Solar Eclipse?

London (Aug 21)  Friday Gold peaked at $1,306.90 at 10:12am and reversed hard closing at $,1291.60. This could have been a key reversal. The action Monday will be very important and $1,280 is a must hold or this rally could be over. Gold still looks good, however, it must hold or the pattern changes.

Will the solar eclipse have any effect on the metals today? We like gold and will look to buy with caution, markets are thin and Fat Fingers show up at the worst possible time. Equities are setting up for a huge correction which could initially help gold, but it will need to stand on Its own eventually. Too much is made of the correlation and the fear trade.

Gold is a hard asset that every investor should own a small percentage of, it should be part of asset allocation and investors can buy now. Traders should watch the $1,280-$1,290 level before jumping in.

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