- Gold initially fell during the trading session here on Monday but has recovered ever so slightly.
- This is a market that's interesting, mainly due to the fact that the U S dollar saw a little bit of buying during the session.
- Therefore, it does make a certain amount of sense that gold might react a little on the soft side.
That being said, we have turned around to show a potential attempt to go higher. And I do think ultimately that's what happens with gold. It goes higher and it starts to look towards the $3,500 level. If we can break above the $3,500 level, then it's very likely that the market could go much higher, perhaps as high as $3,800 based on the measure move of the ascending triangle.
If We Did Fall?
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That being said, if we do fall from here, the $3,300 level as well as the $3,200 level both offer plenty of support. You can see that this ascending triangle is mainly geared towards the summer. And that's not a huge surprise considering that a lot of volume disappears during the summer as a lot of institutional traders will do things like take vacation. They won't be bothered with trying to catch every micro movement in the summertime.
That being said, the Federal Reserve is anticipating cutting rates in September, and I think that will continue to lift gold. But it may be more of a process. I don't think this is the slam dunk that everybody claimed it was going to be. It's just going to continue the overall upward trend. I don't see that changing. But I also recognize that you can't pile in. We still have at least another week or two, a fairly thin trading but eventually we will go higher in my estimation.
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