Gold markets pulled back a bit during the trading session on Monday, as we continue to have a lot of back and forth economic news out there. The Federal Reserve being software that once was of course should continue to drive gold higher longer term, but I think we need to break through the $1350 level to be the “all clear” to go much higher. I anticipate that there is a lot of noise out there to overcome, but eventually we should get a bit of a move to the upside.
At this point, I believe that there is significant support underneath, so pullback should be thought of as buying opportunities. Those buying opportunities should be taken advantage of, unless of course we break down below the 200 day exponential moving average, down near the $1265 level. If we did that, then I think we could see a rather significant pullback. In general, I think that the case for Gold should be pretty good going forward, especially considering that the geopolitical situation hasn’t exactly gotten better either. With that, I am bullish of gold but I also have very cautious about putting too much in at one time. I believe that we will eventually see a breakout, but there is obviously a lot of resistance above that we will need to build significant momentum to get through. Once we do, I think will go looking towards the $1400 level.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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