Gold markets chop sideways overall to open the week
Gold markets have gone sideways over the last several sessions, and as we start the week it appears that Monday will be any different. On a fresh, new high, the market should then go looking towards the $1350 level above, perhaps offering a significant amount of resistance. If we can break above there, the market should then go to the $1400 level. Short-term pullbacks from here should be buying opportunities, because I think there is plenty of noise between here and the $1300 level underneath, which is a major level on the longer-term charge.
Your capital is at risk
Pullbacks should be thought of as value, especially if the EUR/USD market can rally, one of the biggest benchmarks for US dollar strength or weakness. With a falling US dollar, quite often people will put money to work in the precious metals market. I believe that longer-term goal markets will rally, because quite frankly there are far too many issues in the world to think that people won’t want some “safety” when it comes to precious metals. If we break down below the $1300 level though, I would consider this market likely to reach towards the $1275 level underneath. That would be a bit of a “reset”, so I think that we will need to pay attention to that move and show a significant amount of patients. I have no interest in shorting gold presently, there are just too many things out there that could cause issues.