By FXEmpire.com
The gold markets rose for the Thursday session, but didn’t recapture the horrendous fall that we saw on Wednesday. The market still looks likely to face headwinds, and the lack of inflation forecasts out of the Federal Reserve will continue to hamper the bulls in this market. However, there are still plenty of central banks “printing” currencies, and as such there will still be a bid for gold from time to time.
The overall bullishness of this market has been around for over eleven years now, so we aren’t quite ready to sell this market yet. The “floor” to us is the $1,500 level, and as a result we still think there is room to see support come in. However, being honest in our opinions it is hard to get ready to buy in the currently environment.
For starters, we would have to see stability in this market for a few sessions as we have fallen so hard lately. It will take a certain amount of stability to instill confidence in the market for the bulls. The losses over the last several sessions will certainly have been tough for a lot of the bulls, and they will be nervous about getting involved at this point.
The $1,600 level should be supportive as well, but only time will tell if it holds. It is certainly an area that we would be interested in buying on supportive signs, but it would have to be a slow grind down to that level in order to buy supportive candles in a bid to run back to the $1,700 level, an area that we think it would run to next if we bounced.
The next level above that is the $1,800 handle, and it is there that the bulls will have taken complete control. In reality, we will more than likely see a lot of noise in this market for the short-term, and the action will be rough. At this point in time, we are still bullish, but would be hard pressed to be involved just yet. Non-Farm Payroll comes out today as well, and this can of course have an effect on this market too. Being patient seems to be the route to go in this market.
Gold Forecast April 6, 2012, Technical Analysis
Originally posted here
