old markets continue to dance around the $1250 level, an area that has been important more than once. I think that there is a certain amount of demand just below, but I also recognize that the markets have been going back and forth based upon greed and fear around trade war aspects. I think that the market will continue to be very noisy due to headlines involving trade wars, and tweets from the President.
Overall, I think that the Gold markets will eventually end up being a nice longer-term investment, but I think there is even more support below at the $1200 level that would make a nice “bottom” to the market. We could go as low as that level and I think that value hunters will come back out there also. Short-term selling here would probably reach down towards the $1240 level, which has proven itself to be massively supportive. Rallies at this point could reach towards the $1260 level, where I would expect to see sellers coming back in. In other words, this is a very choppy and short term back and forth type of market.
I believe that there should be great caution used when trading this market, because it will move on headlines more than anything else, and of course the value of the US dollar which is going the same thing often.