The gold market fell a bit during the early hours on Monday but has turned back around to show signs of strength again. This is a market that will continue to see strength.
Gold markets initially pulled back just a bit during the trading session here on Monday, but have found support yet again, and it looks like we are trying to do everything we can to rally. Will this be the case? I do think that we have a little bit of noise above us, but given enough time, I do believe that we are going to the $2,400 level.
That’s an area that previously has offered a bit of resistance, but we’ve also broken through there in the same breath. So, I think at this point in time, the market is likely to continue to go higher. Underneath, the $2,300 level should be massive support, not only due to the fact that we’ve seen buyers there before, but we also have the 50 day EMA sitting just above it.
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So with all of that, I think gold continues to see buyers jumping in and trying to push to the upside. The gold market has plenty of reasons to go higher and with that being the case, it does make sense that more retail traders will jump in.
After all, central banks out there are buying, there is plenty of geopolitical concern to be had, and of course, there is profligate borrowing by countries like the United States, which has been on a course of borrowing $1 trillion every 90 days. Sooner or later, that becomes real money.
With all of this being said, I do like the idea of buying gold, and I do think it should be part of your portfolio. They generally suggest that under most circumstances anyways, but that’s especially true. Now, I do believe that we will go higher, but we may have a little bit of work to do to get through the next $30 or so.
Source: Christopher Lewis Fxempire
