The price on Gold has been winding up tighter and tighter over the last few days. On the chart below we can see yesterdays daily candle has formed an inside bar. The last few weeks have been very choppy for gold with no clear bias either way.
The safest play in this market is going to be to wait for price to make a clear break out of this wind up. Until price breaks out either way, this market is a flip of the coin. Once price clearly breaks out this market will become a lot clearer for price action traders.
Price has been in a down-trend and if price can continue this move lower, we could see a major leg lower in Gold.
GOLD DAILY CHART – 5TH FEB 2013
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