By FXEmpire.com
Gold markets did very little during the session on Monday as traders seemed unwilling to take on any type of serious risk in the markets. The candle for the session was a hammer, and this is somewhat bullish but must be kept in perspective of the tightening range that we are currently seen in the precious metals sector.
We still see the $1540 level as pretty strong support, so if we had to take a position it would be long. However, we feel the real support is down at the $1500 level. It takes a break below that area for us to start selling. On a break of the $1640 level, we would become not only long of this market, but aggressively so. In the meantime, this is going to be a short-term choppy back-and-forth kind of trading scenario.
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Originally posted here
