Gold Prices December 5, 2012, Technical Analysis

The gold markets fell precipitously during the session on Tuesday, as the $1700 level was broken through to the downside. However, we close just a few dollars below that, and it suggests that there is quite a bit of support in the general vicinity. We also see quite a bit support right around the $1680 level, and think that buyers will step into the market at that point time. If we managed to break down below there, that’s when a selloff really could pick up steam. Below that area, we see $1650 as support, as well as $1600. However, on the very first signs of support – we are indeed buying.