Gold Consolidates

The consolidation in the metal market continues for a third consecutive week after October pushed Silver and Gold into bearish territory. During October Gold was trading at a high $1,307 and then went to $1,266 before the month ended.

That level was closest to the 200SMA and some support occurred there that moved the price to yesterday's high of $1,288. The move turned out to be somewhat a reflex and the price went down again below $1,280.

This month uncertainty in the metal market is the predominant sentiment and this is seen also in the Silver market where price is range bound between $17.20 and $16.90.

Gold is yet to define a direction and times as these might be used to pile up positions as the market is getting ready to move.

Chart: XAU/USD H4