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Gold uptrend remains intact
The uptrend in gold is still clearly in play, as highlighted by yesterday’s spike higher upon the release of the FOMC announcement. A subsequent pullback this morning has brought us back towards yesterday’s low of $1115. Given that we have seen such a clear trend in play recently, it seems likely we will see another move higher from here.
As such, a bullish view remains, for a move back towards $1128 and $1132 levels. It is worthwhile noting we are approaching a crucial long-term descending trendline which forms the top of a multi-year falling wedge. Thus this rally could run out of steam in the near future. Nevertheless, a bounce today seems highly likely and the bullish bias remains unless we see reversal signals.