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Gold Prices Extended on the Downside, End of Month Recovery Seen

Bruce Kamich

Gold prices have been struggling in recent weeks as a firm U.S. dollar, diminished fears over North Korea and other potential global hot spots, dulled inflation fears, and better returns available in the equity markets have dulled speculation and investment in the precious metal. Both moving averages are typically too long for the futures community that is used to 4-9-18-day signals. In the lower panel is the 20-day price momentum study which shows a bullish divergence with equal lows when prices have made lower lows.