Gold markets broke out above the top of a weekly uptrend channel, which of course is a very bullish sign as it looks like we are ready to continue the longer-term consolidation. The Federal Reserve has blinked a bit, and that of course could help the gold market as there is a lot of volatility out there when it comes to the stock markets and commodity markets. Ultimately, I think that short-term dips should be buying opportunities and that I think more than likely what we are going to see is a return to the $1400 level longer-term.
Gold Price Video 31.12.18
This doesn’t mean that there will be a straight shot higher, quite frankly I think it’s going to be quite choppy and difficult. Given enough time though, I think that most pullbacks are going to be buying opportunities and therefore it’s likely that you can build a longer-term position at this point. Be careful about over leveraging your situation, but I do like the idea of gradually building up a huge position. If we were to break down below the $1250 level, we could run into a bit more trouble, but at this point I think that we most certainly are starting to see buyers jump in and push. Ultimately, I suspect that every $50 or so we are going to see major resistance. Ultimately, this is a marketplace that should continue to benefit from a lot of uncertainty, both at the Federal Reserve and global markets.