Overnight gold went through the$1,200 level like a hot knife through butter. The day has changed but the storyremains the same -- there are no buyers for gold at the moment. The sellers arein total control.
At 5 a.m. EDT, gold traded downto $1,191.80 on heavy overnight volume, which could signify we are close to theend of this move down. As we have written almost every day, we are waiting for$1,180 before thinking about owning gold.
We would expect one more blow-offto the downside, taking gold to $1,180 and possibly below. Remember, $1,180 isnot an automatic buy; it's just the next level that could attract new money.The key here is to identify the level, watch to see if buyers start to step inand then buy. If $1,180 doesn't hold, we could be looking at $1,130.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading