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Gold in Sideways Congestion

One aspect of the enclosed hourly chart is very clear: Since the March 14 lows, spot gold along with the SPDR Gold Shares (GLD) has carved out a sideways congestion area, while the Euro/USD has stair-stepped into a pronounced near-term uptrend pattern.

Certainly, the very positive pattern in Euro/USD has not positively impacted the direction of gold -- at least not yet. For gold to get any upside traction now, it must hurdle and sustain above $1662.14 and climb directly to test $1670.00.

The longer it takes for that to occur, the greater the likelihood of "disappointed long liquidation" that presses gold towards a retest of its March 14 low and possibly into new reaction low territory in the vicinity of $1625.00.

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