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  • 3 weeks later...

It would not be surprising if we do not see a higher price than the weekly open for several months, possibly even years, and there would have been some long-term selling up there. Adding to the bearish case is the fact that the support at 1.0950 has flipped to become resistance.

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Gold prices rose for a second straight session and settled at $1228.17 an ounce on Friday as a series of economic data out of the world’s largest economy disappointed the market and weighed on the American dollar. 

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The XAU/USD pair initially headed lower but found enough support in the $1218/5 area and moved back up, headed towards the 4-hourly Ichimoku cloud. Although Friday’s U.S. retail sales and consumer price index numbers fell short of market expectations, investors are still confidently expecting the Federal Reserve to raise interest rates at its next meeting.

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