Gold markets show resiliency during the session on MondayGold markets pulled back during the trading session on Monday, reaching down towards the $1327 level. We bounced enough from there to show signs of support, and of course a certain amount of resiliency continues to be what we see in the gold markets.
Gold markets pulled back slightly during the session on Monday but continue to find support as buyers get aggressive occasionally. I think that the $1350 level above will be massive resistance, and it’s not until we break above there that I think you can put lot of money to work. In the short term, I think that small positions will be the best way to play this market, as gold continues to see a lot of selling pressure above. I think that if we break above the $1360 level, it’s likely that we go to the $1400 level after that. I like buying dips in general, but I also recognize that gold will be volatile due to the conversation between China and the United States, and it’s knock on effect in the global risk appetite. I believe that the $1300 level below is a massive “floor” in the market, and I think that if we can stay above there, the market is going to continue to find plenty of buyers. If we did breakdown below there, it would be a negative sign, but I think it read more of a “reset” than anything else.
If we can break above the $1400 level, and then sends this market into a “buy-and-hold” scenario, but it is going to take a long time to get there, so I’m not holding my breath for this to happen soon, and will look for short-term trades in the meantime, as it’s all the market is offering.