Gold: Where Are The Buyers?
As gold continues to gethammered, there doesn't appear to be any new money buyers willing to step inhere. This morning gold traded as low as $1,236. As we wrote yesterday, the keylevels are 1,235-$1,240. Failure here could lead to $1,200 and below.
The trading action has been aboutas ugly as it can be, basically straight down about $120 with hardly a rally.We can blame economic data, the strong dollar and about anything else, but thebottom line is the sellers are more aggressive than buyers.
Remember -- markets don't readthe economic reports; they facilitate trade. Humans and programs written byhumans trade, and markets move on emotion. Gold will find a level where newmoney will come in but for now below $1,235, we expect a run at $1,200.
Contributing tokitco.com
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