Gold markets gapped slightly lower at the open on Monday, but not enough to be concerned about. We turned around to fill that gap and then simply sat still. This isn’t a huge surprise, considering that the gold market has had a very strong run to the upside as of late, with the Thursday session forming a massive shooting star, followed by a massive hammer on Friday. This tells me that the market will probably continue to go back and forth in this area, which makes quite a bit of sense considering that the market quite often needs to calm down a bit after shooting straight up in the air the way it has.
Gold Price Forecast Video 21.01.20
I believe that pullbacks are to be looked at as buying opportunities, especially near the $1550 level, the $1525 level, and most certainly at the $1500 level. Alternately, if we turn around a break back above the top of the shooting star from the Thursday session, that would obviously be a very bullish sign as well. I have no interest in shorting gold, I think that loose monetary policy around the world will continue to attract traders towards precious metals in general. Gold of course is the first place where a lot of traders will go looking to, but it does have a bit of a “knock on effect” in other market such as silver. Unless something fundamentally changes, I have no interest in trying to short the gold market as it looks like it is ready to have a very good year.
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This article was originally posted on FX Empire
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