Gold Technical Analysis October 14, 2011

Gold markets had a soft day for the session on Thursday as traders continue to go back and forth in this market. The Dollar was bid on Thursday, and this can sometimes push the value of gold down. The action was fairly light, and did in fact turn back around towards the end of the session, showing that there is still an underlying bid in this commodity.

The action shows us that buying on the pullbacks is still the way to go, and that the demand should still come into play. The market looks constructive, especially if we can get a daily close above $1,680 or so, which is where we see the last of the resistance. With so many risks to the global economy out there, we are hesitant to sell this market as it will more than likely continue to get the “safe haven” bid every time bad news hits the wires.