Gold has been trading around the $1,700 level the last few days as the market is consolidating losses in recent weeks. The losses have come on concerns about the economy and an overall liquidation commodities and stocks.
The question is how to trade gold at the current time. One way to do this is buy near the support level around $1,700 and put a stop slightly below. Those looking to take a short position could sell if the market break support.
I would be more inclined to buy dips in the market. The market could fall to the mid 1,600 level if support fails. There should be a lot of support in this area for a buying opportunity. At the least, there should be a bounce in the market or it could turn into a longer-term move higher.