Elevated Gold Prices Face Bigger Selloff If Support Fails

There’s so much uncertainty today that I think the markets are uncertain about being uncertain.

I know Gold is sure trading like it.

With so much uncertainty in the world today, it’s not surprising that Gold prices remain elevated. But each time it looks like a breakout is imminent, the price of Gold slides back a bit.

Today’s “daily” chart of Gold highlights this tug-o-war. As you can see, the price of gold is in a wide trading range (blue shaded area). But it is trading near the top of that range.

That said, price has slid back a bit of late to an area that has been prior resistance (now support). This support has dual strength as price is also approaching its up-trend line at (1).

This support test looks to be important for Gold, as it try’s to remain within reach of a breakout. If support fails, it could face a bigger decline.

(Click on image to enlarge)