The gold market has rallied slightly during the early hours on Monday as we continue to see a lot of upward pressure, but I think at this point, you have to look at this through the prism of a market that eventually will run out of a little bit of momentum and give us an opportunity to buy it on the dip. That’s essentially what you have to do at this point. The $2,530 level is likely to be a support level as the level has been resistance before.
Short-term pullbacks are probably more likely than not going to continue to be the way forward to get involved, and I do think that gold has much further to go. We have the Federal Reserve cutting rates, and that directly affects the market, but really at this point, I think we also have a scenario where geopolitics comes into the picture and perhaps helps gold as well. I don’t like the idea of shorting gold, and quite frankly, I don’t even have an idea of where I would start. That doesn’t necessarily mean that I jump in and with both hands buy gold, but what it does mean is that occasionally I will start buying.
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In general, this is a market that is moving on a lot of different things, like I said previously, and you also have to keep in mind that the Indians, Chinese, Russians are all buying gold hand over fist, and that of course will continue to drive the price of gold higher over the longer term either way.
Source: Fxempire
