Here is the chart of GOLD. Gold weakened on Friday due to the rising currency rate for the Ozzie Dollar. The chart now has a confluence of price and three Moving Averages (13, 34 and 65). Sentiment against the American Dollar is very low (3-4% bulls). Sentiment readings can stay low for extended periods but invariably are good contrarian indicators. Just when the American Dollar might strengthen is a question of patience.
Gold has been in a sideways consolidation for four months now (June-September). A break from that consolidation will probably be strong and sustained. The probabilities lie to the upside.
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