- The gold markets have been bullish during most of the month of January, and it looks like we could very well see more of the same during the month of February.
- Ultimately, I think this is a scenario where traders will be looking to continue the overall uptrend, but we have the $2800 level above offering a short-term resistance barrier, but if we can break above there, it could very well open up the possibility of a move to the $3000 level.
- This would be based on a “measured move” of the last couple of months, and I do think this does make a certain amount of sense.
This all flies in the face of interest rates in America climbing, but at this point in time, most of what we are seeing is people trying to flee to quality. There are few things that are more quality than gold, so you need to keep that in the back of your mind. While the US dollar could continue to climb, the gold market will almost certainly do the same, as traders are looking to protect their wealth going forward. With so much global uncertainty at the moment, it does make a lot of sense that traders continue to look to invest in the gold market overall.
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Short-term pullbacks should end up being an opportunity, with the $2700 level offering a bit of support, and most certainly the $2600 level doing the same. It’s really not until we break down below there that I would be concerned, but we’ve had a couple of months of consolidation recently, and therefore I think it’s probably only a matter of time before we truly take off to the upside and go looking much higher.
After all, the market had been in a huge uptrend for months, until we started to stabilize in this region. That being said, it looks like momentum is starting to pick up again, so I anticipate that we will continue to see strength.
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