Gold markets pulled back slightly during the session on Monday but continue to find support as buyers get aggressive occasionally. I think that the $1350 level above will be massive resistance, and it’s not until we break above there that I think you can put lot of money to work. In the short term, I think that small positions will be the best way to play this market, as gold continues to see a lot of selling pressure above. I think that if we break above the $1360 level, it’s likely that we go to the $1400 level after that. I like buying dips in general, but I also recognize that gold will be volatile due to the conversation between China and the United States, and it’s knock on effect in the global risk appetite. I believe that the $1300 level below is a massive “floor” in the market, and I think that if we can stay above there, the market is going to continue to find plenty of buyers. If we did breakdown below there, it would be a negative sign, but I think it read more of a “reset” than anything else.
If we can break above the $1400 level, and then sends this market into a “buy-and-hold” scenario, but it is going to take a long time to get there, so I’m not holding my breath for this to happen soon, and will look for short-term trades in the meantime, as it’s all the market is offering.
Gold Outlook Video 10.04.18
This article was originally posted on FX Empire
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