The gold markets fell in the US afternoon on Tuesday as the Federal Reserve released a note that claimed inflation was nowhere to be found. This of course hurts the inflation trade when it comes to gold, but in the end - this will only be a slight setback for the market as there are plenty of central banks pumping liquidity into the markets.
The $1,650 level below still looks supportive, and we are looking to see if there is a supportive reaction at that level in which to buy this market. The next couple of days should see us forming a bit of a base in the area, and it is after this that we are looking to buy. We are not selling gold until we break and close below $1,500 as it is our line in the sand.
Gold Forecast March 14, 2012, Technical Analysis
Gold Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3