- Gold initially pulled back a bit during the opening hours of Monday, only to turn around and show signs of life.
- At this point in time, I think we are threatening a continuation of the longer term uptrend.
- And I think we also have to look at this through the prism of a market that I think is trying to work off the massive amount of momentum that we have seen over the last several months.
Now I think we've got $3,200 underneath offering massive support and $3,500 above as massive resistance. I do believe at this point in time; we are getting fairly close to trying to sort out what we're going to do for the rest of the bigger move. And it is worth noting that at least silver has taken off to the upside, so maybe there's a little bit of knock-on effect just waiting to happen here. I believe ultimately this is a scenario that remains noisy but positive overall.
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The 50-day EMA is near the $3,245 level and rising. If we get above the $3,500 level, I think we do that eventually. The market has a $300 measured move waiting, and that would be $3,800. It's really not until we break down below the $3,000 level that I've become concerned about the overall trend. With central banks around the world hoarding gold, and of course, a lot of concerns about the global economy, I think it makes a lot of sense that gold continues to at least be at the very least they buy on the dip type of scenario.
Ultimately, it is almost impossible to fight this trend, nor do I want to anytime soon. As long as this is the case, I am looking at all dips as potential opportunities.
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