Gold markets pulled back initially during the trading session on Tuesday, but found support near the Monday session lows, as we turn around and continue to reach towards higher levels. I believe that the $1325 level will continue to be rather resistive, but clearly after the impulsive break out above the $1300 level, buying is what we will probably continue to do. However, I recognize that the $1325 level does have a lot of resistance above it, reaching towards the $1350 level. It’s going to take a lot of momentum to get above there, so I would expect several pullbacks.
Gold Price Video 13.02.19
The $1300 level was previous resistance, so it makes sense that the area would be massive support. At this point, I’m looking to buy dips for short-term moves, recognizing that it’s going to take a lot of momentum to go higher. If we break down below the $1300 level, then I think the market probably goes looking towards the $1275 level underneath, which is the beginning of the initial surge higher that finally broke the specter of the $1300 level. Overall, I believe that the softening Federal Reserve has a lot to do with was going on, but then we also have plenty of geopolitical concerns out there that could continue to be a propellant for buyers in this market as well. If we turn around and break down below the $1275 level, then we probably have to pull back quite a bit to reset the situation.
Please let us know what you think in the comments below