Pay attention to the US dollar, because if it starts to fall, that can put upward pressure on gold in and of itself. I believe that the market is one that is trying to form some type of base underneath, but it’s going to take some time to finally get the clarity that we need. If we were to break down below the $1300 level, that would be very negative, perhaps in go down to the $1275 level next. Ultimately, I believe that gold goes much higher, perhaps even reaching towards the $1800 level after that. The $1400 level between now and then is a massive “ceiling” in the market, and by going through there we could see quite a bit of bullish pressure build up. I like the idea of buying gold on dips and will continue to do just that as the markets continue to attract a lot of value hunters. Expect noise, but I think there are plenty of reasons to get long of gold for the longer-term move. I would add slowly.
Gold markets initially fell during trading on Monday, but found enough support near the $1315 level to cause buyers to start jumping in.
Gold markets were a bit noisy during trading on Monday, as traders came back from the weekend. The $1315 level looks to be offering support, and I think that it’s only a matter of time before gold markets turn around and explode to the upside. I would anticipate a move towards the $1325 level, but if we can break above there, the markets could go much higher, perhaps reaching as high as $1350 over the next several sessions. Remember, gold does have both a “risk on” and safety aspect to it at times, depending on how the global markets are behaving.