Gold markets continue to be very positive overall, grinding higher and towards the $1225 level. I believe that the market will probably continue to be somewhat resilient, but at this point I think we may need to take a bit of a breather as the $1225 level is a major round figure. There is a lot of attention at that level historically, so I think it’s only a matter of time before we will have some significant resistance. However, if we can clear that level, I think the market will then end up being very bullish and should continue to go even higher. The reality of the situation is that the market is probably paying more attention to the US dollar at this point than anything else, so if it continues to be somewhat tepid, that should help Gold markets overall. I think gold got a little oversold, but it wouldn’t take much to have people spooked right back into the greenback, and that of course could cause major issues. Overall, I believe that the attitude of gold should remain positive long term, but we will of course have major pullbacks as there is still plenty of fear out there just waiting to be launched.
The $1200 level continues to be psychologically important, so keep that in mind. If we were to break down below it, then I think that could accelerate the selling. If we break above the $1225 level, then I think the next target is probably $1250 after that.