It is believed that selling rallies will continue to be the best way to deal with the gold markets, especially with the $1230 level looking so resistive. As soon as we get some type of exhaustive candle, it’s time to start selling yet again. A breakdown below the $1200 level is not only a negative sign, but we should pylon into the short positions.
There is no interest in buying gold, unless of course there is some type of major geopolitical issue, such as North Korea flaring up, but quite frankly I think and less something like that happen, is very likely that strength will be sold going forward as interest rates offer a safer return in the bond markets and other financial instruments. While there is a place for gold in everyone’s portfolio, it’s not believed that buying in this environment is very prudent, but recognized that the $1000 level below is a massive area on the multi-year charts. Selling seems to be the only thing to do.