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Gold: Is There A Precious Metal Therapist In The House?

8/9/12

8:07EST

Gold: (December contract) It reached 1620.90 (reached 1620.30) therefore we're on new numbers to determine the immediate direction (not now term); big difference; my gold method of trading terms is strictly based on range not time; as such a now term move is 0 to 19.99 the immediate term range is from 20.00 to 39.99; then the short term move is 39.99 to 79.99; intermediate term move is from 79.99 to 149.99 - this is how gold trades within a structured range.

Gold is currently heading down to 1607.10/1607.50; the price action or reaction at this level will determine the next immediate to short term move.

As updated yesterday gold is currently suffering from an identity crisis (risk) therefore the price action at 1607.10/1607.50 should help resolve this issue.

Getting back to basics, until gold reaches 1505ish all upward movements are corrective; but this can change in the event of an identity change.