Last week gold popped from the $1,240level as it looked like the bottoms had been put in. The rally from the lowscontinued through Monday, trading as high as $1,267. After peaking at 8 a.m. EDTMonday, gold managed to drift lower most of the day, losing most of its gains.
This morning gold is down $11 andappears headed back to the $1,240 level and possibly lower. Unfortunately, themetals markets, especially gold, remain weak overall and can't seem to find newmoney buyers.
Like all markets, gold and theother metals will resolve the negative trading patterns they are in and willfind new money; the only question is from where. As long as gold holds $1,240,we will be cautiously long.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading