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Gold has been steadily falling
in a 'descending triangle'.
Discussed today on the Sydney
Morning Herald website, this type of pattern is formed when a
series of lower highs emerge while the lows hold steady.
Mark Umansky,
of the Australian Technical Analysts Association, says in the report that the
appearance of this pattern in a longer term uptrend can suggest a powerful
reversal pattern may emerge.
However, a dramatic downturn is
not the only possible outcome. Click here for gold’s high and low
predicted by this type of analysis.
On Seeking Alpha, Tim Iacono says when the gold price converges in an
ever-narrowing trading range, it’s “a development that is usually followed by
a breakout in one direction or the other.”
It’s likely to happen “sometime
in the next month or so”, he says, citing possible catalyst
events in August. Click here for more.
Overnight
in New York, gold futures settled down US$5.40 to US$1577.40 an ounce. Silver was down
26 cents to US$27.04 an ounce.
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