Gold Technical Analysis October 18, 2011

Gold markets continue the grind that we have seen recently on Monday. The market looks nervous, but it is consolidating in an upward motion as the lows keep getting higher. The market is also being influenced by the fact that all other markets are being sold on Monday, and you should question whether this is a gold negative move, or if it is simply traders having to sell their gold positions that are profitable in order to pay for other positions that aren’t. Either way, we see no reason to sell gold at this point in time, and would prefer to buy it on a pullback. Until we break below the $1,600 level, we are still willing to buy minor dips as the trend is up, and has been for over 10 years.