Today, let's take a quick look at the recent action in the price of gold. To begin with, try to forget the headlines you might have read about the price of gold, and take a look at the chart below.
On the recent decline, the price of gold plunged from $1800 a troy oz. to $1200. During "normal" rallies from such oversold levels, the bounce is from 1/3 to 1/2 the recent decline. That means that gold should bounce up to $1400 to $1500 in a normal retracement. You can see the retracement certainly is not unusual in its bounce.
I would guess that as soon as the current fear attack is over, the price will once again decline into its first real support level of $1000 an oz.
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