Is Gold`s Technical Correction Done?
Gold`s technical correction to the low of $1,550 was close enough to the final target at $1,520. Although I do not expect gold to start moving higher anytime soon, I do believe that gold, around the $1,500 area, is a good area to start building a long position. The downside risk is small, if gold trades below $1,500 then further downside potential is possible. Fundamentally, global monetary policies support the value of gold. Technically at this stage, I am expecting some consolidation and a base formation within the $1,500 area.
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