Gold markets rally and churn during Monday sessionGold markets continue to go back and forth during the trading session on Monday, testing the $1350 level. This is an area that has been important in the past, so I think it might take a bit of work to get above there.
Gold markets rallied significantly on Monday after initially pulling back, reaching towards the $1350 level. This is an area that has a little bit of a cluster just above, showing signs of exhaustion and perhaps resistance. If we can break above the $1353 level, the market then should go to the $1360 level above. If we can break above there, then I think the market could go to the $1400 level above, which is important. A clearance of that level gives us an opportunity to be more of a “buy-and-hold” market anyway.
The alternate scenario of course is a pullback, but I think there is plenty of support near the $1335 level, which is an area that should be a bit of a magnet for price. I think that we do continue to see buyers jump into this market, especially if there is some type of negative news coming out of the trade war talks, that of course could send this market higher, and not to mention the serious situation and the potential moved to the upside. Longer-term, I believe that gold does break out to the upside and continues to go to the $1800 level, but obviously it’s going to take a while to have that happen. If we did breakdown below the $1330 level underneath, we could unwind to the $1300 level, which is massive support on longer-term charts. I like gold, but I would buy very slowly, and then add as the market turns out to move in our favor.