Gold markets rally on Friday, but failed to break out
Gold markets went sideways in general, showing a lot of choppy trading during the trading session on Friday. The $1336 level has offered a significant amount of support, and then rallied towards the $1345 level. I think that if we can break above the $1350 level, the market should be free to go much higher, perhaps reaching towards the $1400 level. I like the idea of buying golden bits and pieces and looking at short-term pullbacks as an opportunity to pick up value in what should be a positive market based upon the longer-term charts. That’s not to say that we will break out rather quickly, just that we will eventually find a reason to go higher.
Your capital is at risk
If we can break above the $1400 level, then I think the market has a relatively clear path to the $1800 level above, and then even the $2000 level after that. I like the idea of short-term pullbacks to pick up bits and pieces of gold as it gives us an opportunity to build up a large position for that break out. I believe that the market participants will continue to look at this as a way to get away from the greenback, and of course a way to play the entire situation between the United States and China and a potential trade war. Recently, we have seen higher lows, and that of course is a very important signal as to where we could go next.