For many shorts that caught this move, it has been quite a ride. For the short-term trader or investor, there may still be an opportunity to play the short side. For those who "See the forest through the trees," however, this may prove to be nothing more than an opportunity to buy gold bullion at lower price levels.

One must only look at a quarterly chart or yearly chart to see that the uptrend in gold remains intact on the larger timeframes. In addition, many of the global issues that could be bullish for gold are still here and would not appear to be going away anytime soon.The question now is, where will gold prices stop?

It is hard to tell since the market has sliced through so many potential support levels like a knife through warm butter. The fact is the market will stabilize when there is no one left to sell.

When the bearishness has reached an extreme, perhaps a selling climax to $1,300 or lower is in store. We shall see. Until we see a selling climax, additional downside for gold prices is likely.

Please visit our Web site for updates on the gold market and useful information for purchasing the physical metal.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Matt Zeman is a trader at Kingsview Financial. He began his trading career as a runner in the grain pits at the Chicago Board of Trade before becoming an arbitrage clerk. Eventually he started trading equity options and stocks. Matt now is a full-time futures broker and also authors a blog for gold investors at Appreciate Gold. He has been a frequent guest on CNBC, Fox and Bloomberg, and provides his views on the stock, bond and futures markets for financial media including Dow Jones, the L.A. Times and The Associated Press. Matt is a member of the Chicago Board of Trade, and carries series 3, 7 and 66 licenses.

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