Gold Markets Continue to Build Base for Next Leg

Gold last traded at $1,953 an ounce. Silver at $26.35 an ounce.

NEWS SUMMARY: Precious metal prices eased back Friday on profit-taking despite a weaker dollar. U.S. stocks traded mixed as as the S&P 500 again failed to reach its February record high.

 FX Empire---"Gold markets gapped lower during the trading session on Thursday but then turned around to fill that gap. Ultimately, the market looks likely to continue to go higher due to the fact that the $1900 level underneath holding as support. If that is going to be the case, then the hammer that formed during the Wednesday session will be perfect. After all, it did touch a large, round, psychologically significant number...The fact that we are holding up on Thursday also lends credence to the idea of this market looking good, so ultimately, I am not interested in selling. Yes, I recognize that there was a complete thrashing on this market during the Tuesday session, but that was essentially something that was overdue. Now that it looks like we are stabilizing, people will start to dip their toe into the water and go long. For myself, I only added to a longer-term core position that am willing to hold for quite some time. All things being equal, I think that the market goes looking towards the highs again. All things being equal, this is a market that is probably moving more of the Federal Reserve dumping dollars into the system more than anything else, something that is not going to end anytime soon."