Gold Prices March 27, 2013, Technical Analysis

The gold market fell slightly during the session on Tuesday as the markets were relatively calm. You can see that we are just below the $1600 level, an area that we consider to be supportive. In fact, we think the support runs all the way down to the $1550 handle, and as a result we think any supportive candle in this general vicinity is reason enough to start buying. Also, we recognize the fact that the $1620 level continues to be the next hurdle that the market needs to get over in order to continue higher. If we can close above that level on a daily chart, we would be willing to hang onto the trade for at least the immediate move that we suspect will be to the $1660 handle.