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Gold markets had a fairly calm week again as the $1550 level continues offer support. The general shape of the market is a bit of a descending triangle, and as such we wonder whether or not a breakdown is coming. However, it must be said that massive support lives between the $1500 level, and the $1550 level. This is an area that can be very difficult to break down, but if it does give way this would be monumental in the bearish momentum picking up in this market.
In the meantime, we think that summer trading ranges are taking hold, and as such there will be little motion in this market. For the long-term trader, we need to see the $1650 level overtaken in order to get confident about be long of this market. If that happens, we see a move to $1800 as very likely. Alternately, if we see a move below the $1500 level, we think this market has a long way to go down.