Gold rallies during the week, but gives back much of the gains

Gold markets rallied a bit during the week, reaching towards the $1350 level, before rolling over to form a shooting star. I think that the market has plenty of support near the $1300 level, meaning that we remain range bound overall. I think that the market continues to be choppy, as there are lot of moving pieces when it comes to what’s going on with gold. I believe that market participants will continue to see this as a “buy the dips” type of situation, but quite frankly it’s difficult to imagine a scenario where you would be comfortable doing so in mass amounts.

If we do break above the $1350 level, the market probably goes looking towards the $1400 level next, an area that will be resistive. Once we break above there, I feel that the market is probably free to go much higher and will finally break through most of the major resistance that has been an issue. Ultimately, I believe that the $1300 level should offer massive support, giving us a bit of a barrier and sense of certainty for gold. I think there is a large amount of support extending down to the $1250 level after that, so look for these pullbacks as opportunities to go long of a market that is going to continue to show a lot of nervousness and sensitivity to talks of trade wars, and of course other geopolitical events.

Price of Gold Video 09.04.18

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