Gold Technical Analysis October 28, 2011

The gold markets rocketed again on Thursday as traders continued to buy into the “risk on” trade now that the EU has come out with at least the start of some kind of plan now. The concerns of course are that the measures aren’t enough, and that would weaken the value of currency as well. Because of this, safety trade or risk on trade – either one is going to be good for gold, and as we have stated over the last several days,  gold is entering another massive bull run, as we suspect the market will run to the highs again. The market should be bought on dips, and we will continue to do so as long as we are above the $1,600 level.