With that being the case, I think you’ve got a situation where we continue to grind sideways. Gold ran so far in such a short amount of time; it needs sideways action to work off some of the froth. Or better yet, it needs to see a pullback towards the $2,200 level. At this point in time, I still think it’s a bit difficult to chase gold. But if you were quick enough overnight, you got a quick scalping opportunity.
Heading into the weekend, it’s difficult to imagine how traders will think about this because they may want to hold gold due to the potential trouble over the weekend, but at the same time, what happens if there’s good news? Gold will drop 100, maybe 200 dollars. So, at this point in time, it has to be thought of as a longer-term bullish yet short-term neutral market, and that’s exactly how I will be trading it.
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