Gold gives up gains during Thursday trading

The gold markets have been very choppy over the last several sessions, and an overall upward momentum-based trade. I think that if we can break above the $1355 level, the market will go looking towards the $1360 level, and then perhaps breaking above there to go even higher. Gold market participants continue to be very erratic, and I think gold is very difficult to deal with as it is both a safe haven and a risk asset. What I mean by this is that the situation in North Korea heating up could cause investors to serve buying gold for safety. The same thing could be said for an escalation of tension between the United States and China, as people will be worried about global trade. Ironically, if the situation between the United States and China comes down, it probably put downward pressure on the US dollar, which in a sense should lift the gold markets. In other words, I think it’s only a matter of time before we go higher. I look at these pullbacks as potential buying opportunities, and I believe that we will continue to see buyers come in.

If we broke down below the $1300 level, at that point I think that the market would probably breakdown rather significantly. I don’t see that happening though, as we continue to see value hunters come into this market. In general, I like the idea of buying dips and adding every time we pull back.

Price of Gold Video 20.04.18