The latest SEC investigation of Goldman Sachs has brought down most asset classes, including gold. Of course this makes no sense whatsoever, since the secular bull market in gold is driven by factors outside Goldman’s packaging of esoteric securities to unsuspecting investors. However, short-term moves often defy logic, and it is the job of the long-term investor to block out day-to-day noise.
Technically, gold is consolidating once again after failing to sustain a breakout above $1,160. Support lies at $1,130 and $1,100. Below $1,100 support lies between $1,070-$1,080. Gold is still trading above its 30-day moving average, so the technical damage of Friday’s sell-off was minimal.
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