Gold markets have drifted a bit during the trading session on Thursday, reaching down towards the $1215 region. The market has significant support at the $1210 level, but even more at the $1200 level as far as I can see. I think that it is only a matter of time before the markets turn around and bounce from here, and I think that it could be a nice buying opportunity if you are patient enough to wait for it. In the short term though, I think that rallies will probably continue to be sold off, as gold simply cannot get out of its own way.
Selling rallies on short-term charts might continue to be the best way between now and $1200, but I think that the volatility will continue to be stomach churning. With the jobs number coming out today, it’s very likely that we will continue to see continued bouncing around, but I suspect that any flush lower at this point will probably be met with buying pressure. If we were to break down below the $1200 level, it’s very likely that we could break down rather significantly from that point. Ultimately, this is a market that I think will be very lucrative for the longer-term trader, but they obviously need some type of stability to start buying. Again though, if we break down below the $1200 level, then I think we are looking at another $200 to the downside, which of course would be a nice long term trade as well. The next couple of days should be crucial for gold.