Gold markets initially pulled back during the trading session on Monday but have turned around to recover a bit. We are currently hanging around the $1550 level, an area that had seen a gap higher previously. Furthermore, the markets are trying to feel out whether or not there is a “risk on” or “risk off” flavor to everything. At this point, it’s very likely that we will see a bit of choppiness and perhaps the markets tread water for a while as we had rallied so significantly. That being the case, I like the idea of going sideways and waiting for an impulsive candle to the upside or perhaps a bit of a pullback in order to take advantage of what I believe will be a longer-term uptrend.
Gold Prices Video 14.01.20
It’s a bit much to think that suddenly tensions will disappear between the Americans and the Chinese, and especially the Americans and the Iranians. Because of this, I think it’s only a matter of time before gold gets a boost, and I would be very interested in gold down at the 50 day EMA if we were to pull back towards that level. If we don’t, breaking above the $1600 level would be the next leg up just waiting to happen, but I prefer to try to find some type of value in this area that we can take advantage of. Gold is something that does tend to move in huge waves, so giving the market a bit of an opportunity to offer you some value is probably the best way to go.
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This article was originally posted on FX Empire
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