Gold Prices October 9, 2014, Technical Analysis

The gold markets initially fell during the session on Wednesday, but when higher after the Federal Reserve released its minutes from the previous meeting. It suggested that perhaps the Federal Reserve is farther away from hiking rates than people had anticipated. However, there is a significant amount of resistance just above, so we still believe that we need to get above the $1240 level in order to start buying. Between here and there, any resistive candle would be a selling opportunity as far as we can see. The fact that we broke down below the $1200 level is significant, and we believe that ultimately this market will fall apart and head towards the $1000 level.