Gold markets bounce from crucial trend line during the weekGold markets initially fell during the week but found enough support at the crucial trend line to turn around and break above the $1300 level. Ultimately, this market should continue to go much higher, and I think that a return to the $1350 level makes quite a bit of sense.
Gold markets initially fell during the week but found enough support at the uptrend line to turn around and continue the upside and go towards the $1350 level above which was massive resistance. The market has formed a major ascending triangle and should continue to drive the market to the upside. If we can break above the $1360 level, then I think the market probably goes to the $1400 level. I think that short-term pullbacks continue to be value propositions the people will take advantage of, and it’s obvious to me that the uptrend line is crucial. If we were to break down below the $1265 level, the market could unwind rather drastically and reach towards the $1250 level. Ultimately, I think that more than likely we will see bullish pressure though, because there are a lot of concerns around the world, not the least of which would be Syria, North Korea, and trade talks between the US and China.
Longer-term though, I do believe that it’s only a matter of time before Gold markets takeoff to the upside, and I think that they will continue to offer value on these dips. However, you must remain flexible and understand that if we pull back from here, it is possible that we could break down. Ultimately, I think that the market will continue to be noisy to say the least, so I would keep my position size small and at the very least with very little leverage.