By FX Empire.com
Gold markets sold off on Wednesday as traders continue to liquidate positions in order to raise margin. One of the biggest culprits: The LCH raising margin requirements on Italian bonds. In a situation like this, the largest firms will find that they have to sell off the winning positions in places like the gold markets to cover the sudden losses they are finding in other markets. The gold market is still strong, both fundamentally and technically. The mistrust of Europe should continue, and as a result we think the gold markets will rise. The $1,750 level should be supportive, all the way down to $1,700. We are looking to buy in this area if we get the supportive looking candle that we need.
Originally posted here
