Gold markets continue to be bearish overall during the day on Thursday, as we see the 50 hour EMA offer plenty of resistance. Beyond that, we did get a bit of a bounce from the psychologically and structurally important $1250 level, but quite frankly I think that is a bit of a fantasy to think that we are going to turn around and start rallying with any type of significance at this point. I believe that short-term rallies will continue to be sold, but it may take a significant amount of momentum to break down through the $1250 level significantly and for a longer move. Because of this, and the headlines moving around the world it makes sense that this market continues to be very volatile to say the least.
I think on a fresh, new low, we will get continued and sustained downward pressure, perhaps reaching towards the $1225 level over the longer-term. I believe that as long as trade wars are a concern, Gold will continue to act very skittish to say the least, and I think it’s only a matter time before the sellers come back in on any type of bounce. In fact, it’s not until we break above the $1275 level above that I think it’s reasonable to start buying, unless of course you are buying physical silver for longer-term investment. Short-term sellers continue to run the market overall, I see no reason to fight that.