Gold markets struggle at resistance again during the weekGold markets initially tried to break above the $1350 level during the week but rolled over to form a bit of a shooting star. However, I see there is more than enough support underneath that could continue to come into the market and singled higher.
Gold markets initially tried to break above the $1350 level during the week but turned around to form a bit of a shooting star. I think that the market is in a massive uptrend channel, or perhaps even an ascending triangle. Either way, the market should continue to go higher, and if we can break above the top of the range for the week, I feel that the market will probably continue to push towards the $1375 level. Once we break above there the market will then go looking towards $1400.
The $1400 level above is a significant barrier on the longer-term charts. If we can break above there, the market could go to the $1800 level. Ultimately, I think that the move would be rather quick, as there is a lot of empty space between now and then. I think that pullbacks will continue to be supported at the $1300 level as well, and I do believe that eventually gold will find a way to break out. Geopolitical concerns, following US dollar, a potential trade war even, all these reasons could send this market to the upside.
Buying the dips continues to work from what I see and has since the end of 2016. That’s not to say it’s been an easy move, but it certainly has been steady and positive over the longer term as the markets continue to go from the lower left-hand corner to the upper right-hand corner. Given enough time, I fully anticipate seeing a significant move higher.