is very large, and that does suggest that we will have quite a bit of follow-through because candlesticks like this do not happen in a vacuum. We saw this the other day in various markets, including the stock market. All things being equal, this is a market that I think will eventually see quite a bit of pressure, perhaps even to break down below the $1500 level. The $1500 level is an area that has psychology attached to it, but more likely than not, we will drop down to the $1200 level.
at the very least to turn this market around, and even then, I think we would have to have some type of fundamental reason to think that things have changed. It is worth noting that the $1680 level is important because it had been supported for quite some time, going back several years. Now that we have broken down below there, it is likely that we go much lower over the longer term, but we will get the occasional rally.
Those rallies should be sold into at the first signs of exhaustion, and therefore it’s likely that we continue to see this as the trade opportunity for gold markets between now and the end of the year. The market will continue to be noise driven, and of course driven by the 10-year yield, as well as the US dollar. Keep an eye on all these charts, it will view a “heads up” as to where we get next.