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The gold markets had a pretty volatile session on Friday, to eventually end up basically unchanged. We saw a surge higher, but was repelled at the recent highs in the vicinity of $1630, and also saw a move lower down to $1610 that was met with buying. This type of action suggest that the pressure continues in this market, and we certainly see that it looks like the market once the go higher.
As we have been saying for quite some time now, $1640 is the magical number in this market. Once we get above that area on a daily close, gold should continue much higher. In fact, it's exactly what we expected but are willing to acknowledge the fact that training is going to be choppy into we get that move. We see that the lows are getting higher, and this is a classic signal that buying is the only direction to go. In fact, we wouldn’t even consider selling gold until we were below the $1500 level.