Gold Prices July 10, 2012, Technical

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By FX Empire Analyst - Christopher Lewis
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Gold markets had a very quiet session on Monday as the markets really had no catalyst to push it in one direction or the other. The market remains stuck in a consolidated area between the $1640 level, and the $1540 level. As long as we are in this area, there are only going to be short-term setups available and as such we are not interested in taking any large positions at this point in time.

Obviously, you can sell at the $1640 level as well as buy at the $1540 level and do quite well in this type of environment. However, gold does happen to have the ability to smash through level suddenly based upon headlines, so while this is a perfectly acceptable trading strategy perhaps a smaller than usual position would be advised. Until we break out of the consolidation area, we are not putting on any large trades in this market.

Gold Prices July 10, 2012, Technical

Gold Prices July 10, 2012, Technical

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