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For the second time this year we’re seeing a market condition in which the gold price is being driven almost exclusively by fear. And while this condition can be quite profitable for gold investors and traders in the short term, rallies driven by fear tend to reverse quickly once investors’ worries have subsided. In this report we’ll discuss the reasons why gold investors should proceed with caution in the coming weeks as gold is becoming increasingly vulnerable to a sharp corrective pullback.
For most of July, the price of gold has remained in a fairly