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Alert-17:02 ACM Precious Metals Report: Gold Skyrockets on Investors Seek Shelter
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Gold Bulls sought victory bidding up the price through ETF and other derivative related activity. The precious metal faced a brief drop below $920, but momentum snapped prices back into a general upward trend. Volume subsided towards the latter end of the session, but the resurgence of gold as an instrument to effectively hedge risk and guard inflation should give Traders optimism for more upside next week. This product may also be viewed as speculative play by a larger sect of the investment community in the past, which should increase volumes and smooth out volatility. The window between gold and platinum is narrowing, with a spread of only $54 between the two. Oil was higher, but can’t seem to breakout above $45bbl over an extended period. If Eurozone situation worsens, and the string of economic data out of the US persists to be negative, the fundamental story to hold gold is well in place. From a technical perspective RSI breached levels above 80 showing the brevity behind gold buyers. The signal line has since subsided to 56 showing the rally has fizzled out in today’s session, we will be looking for gold to carry this pattern a bit longer, but are cautiously bullish as the technical story implies activity will be mostly neutral.
Support: 904.70 Current: 927.85 Resistance: 937.85
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