Gold markets initially try to rally during the day on Tuesday but found enough resistance to the $1305 level to turn around and fall significantly below the $1300 level. I think there is plenty of support underneath though, especially at the uptrend line as you can see on the chart. I think that we will probably continue to see a lot of support underneath, and I think it’s only a matter of time before the buyers get involved and push this market to the upside. If we do break down below that uptrend line, that’s a very negative sign and could break this market apart. That being said, I think that the market will eventually find some type of clarity and continue to move.
I believe that the uptrend line is going to be very crucial, and I think that is an area that could be very important, and if we break down below there I think that the market will probably go looking towards $1275 level. That’s an area that is significant support, based upon previous action. On the other hand, if we rally above the $1308 level, the market should continue to go higher and continue to climb a bit from there, perhaps towards the $1325 level. There is a lot of noise in general, so keep that in mind and keep your position size small. Overall, I do think that eventually the buyers come in and take control.