Potential signal:
- The easiest trade is to buy gold above $2800, with a stop loss at the $2700 level.
- I would target $2960.
Gold rallied a bit during the trading session on Friday as we continue to see a lot of upward pressure on the gold market. But the question now is whether or not we can actually go higher for longer. I think we do, but there was a little bit of hesitation heading into the weekend. So therefore, I think we have a scenario where pull backs are buying opportunities and the $2,700 level underneath continues to be the floor. The 50-day EMA is racing toward that area, and therefore you need to be cognizant of the fact that it could very well reinforce this region. I have no interest whatsoever in trying to get too cute here.
We Could Break Higher, and Soon.
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I think given enough time, the market will break above the $2,800 level and then go looking to the $3,000 level. I don't like shorting gold. I think there are enough issues out there with global trade, with tariffs, with geopolitics and so many other things that gold will continue to shine as it were. We have been in a very strong run for some time and then had to work things off as far as momentum for a couple of months and now it looks like we're ready to take off again. I do believe that the weakening US dollar over the course of the last 24 hours has been a little bit of a catalyst, but I still expect the US dollar and gold both to rise over time as other fiat currencies really get hammered. So, with that, I'm bullish on gold, I'm buying dips, I expect to see 3000 sooner or later.
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