Gold Eagle News:
Gold saw a huge sell-off last week: the precious metal was down by $49 or 3.2% to close at $1,463 as of the final trade on the New York COMEX on Friday afternoon.
During declines as we witnessed last week, it can be helpful to remember the big picture: gold broke out of a six-year basing pattern below $1,434 per ounce last August. After six years of grinding prices before then, it is unlikely that the final top is in yet after a single one-month surge above the resistance zone.
What we are witnessing now is a retest of the breakout. A retest is simply a term which describes behavior in which the market is literally asking former buyers: “Are you sure you meant to buy back then?”
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