The gold markets fell initially during the session on Monday, but as you can see found enough support at the $1310 level in order to bounce and form a nice-looking hammer. There have been a couple of hammers in this general vicinity, so I feel that the market is in fact going to continue going higher, but at this point in time it appears that the market may have to take a few moments in order to continue to keep the momentum to the upside. The market will often have to take a breather in order to attract more buyers, which should eventually turn out to be the case.

A break above the $1335 level should send the market to the $1400 level, which was the high from the month of March. We fell from that area rather significantly, but it now appears that we have broken above significant resistance, and are now using it as support. Because of this, I am very bullish of the gold market, although I recognize that it could take a little bit of time for the move to appear.

Break out to the upside, and then a real challenge of the recent highs.

I believe that this market will in fact break out to the upside, and then challenge the recent highs that we have seen. However, I think that there is a significant amount of noise between here and the $1350 level, so even if we break above the $1335 handle, I think the market will continue gyrate and favor short-term traders until we get above the aforementioned $1350 level. Ultimately, it would make sense that the gold markets continue to go higher, as they had been significantly sold off and now that we have made the impulsive move higher, it tells me that there is in fact significant buying interest by so-called “smart money”, which often determines when “accumulation” happens in the marketplace as gold had become far too cheap, and therefore invites value investors, as they recognize a longer-term trend of gold is still higher, and has been for years.

Gold 7814

Related Articles
  1. Financial Advisors

    Tips on Passing the CFA Level I on Your First Attempt

    Obtain valuable tips and helpful study instructions that can help you pass the Level 1 Chartered Financial Analyst exam on your first attempt.
  2. Professionals

    The Best Financial Modeling Courses for Investment Bankers

    Obtain information, both general and comparative, about the best available financial modeling courses for individuals pursuing a career in investment banking.
  3. Stock Analysis

    These are Twitter's 4 Biggest Bets for Next Year

    Looks at Twitter's plans for 2016 under CEO Jack Dorsey, who has returned to lead the company he founded seven years after he was replaced.
  4. Investing Basics

    Why Interest Rates Affect Everyone

    Learn why interest rates are one of the most important economic variables and how every individual and business is affected by rate changes.
  5. Entrepreneurship

    Top 5 Billionaires Living In Dallas

    Learn who the richest of the rich are in a city known for creating some of the world's wealthiest people, and read how they amassed their vast fortunes.
  6. Credit & Loans

    Best 3 Online Auto Loan Calculators that Include Tax

    Learn where you can find the best auto loan calculators online that include sales tax, and understand the different features these calculators offer.
  7. Taxes

    Tax Breaks For Volunteering

    Your volunteer ventures could earn you some welcome tax deductions, along with the satisfaction of helping others.
  8. Retirement

    5 Secrets You Didn’t Know About Traditional IRAs

    A traditional IRA gives you complete control over your contributions, and offers a nice complement to an employer-provided savings plan.
  9. Retirement

    Is Working Longer A Viable Retirement Plan?

    Fully funding someone’s life for three decades without work is tricky. The result is retirement has become, for many, a 30-year adventure.
  10. Retirement

    Don’t Retire Early, Change Careers Instead

    Though dreamed of by many, for most, early retirement is not a viable option. Instead, consider a midlife career change.
  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Is Israel a developed country?

    Israel is considered a developed country, although it has substantial poverty and large income gaps. The International Monetary ... Read Full Answer >>
  3. Can personal loans be included in bankruptcy?

    Personal loans from friends, family and employers fall under common categories of debt that can be discharged in the case ... Read Full Answer >>
  4. How many free credit reports can you get per year?

    Individuals with valid Social Security numbers are permitted to receive up to three credit reports every 12 months rather ... Read Full Answer >>
  5. Is the Wall Street Journal considered to be a conservative publisher?

    The Wall Street Journal is controlled by Rupert Murdoch via Dow Jones Publications, which in turn is owned by Murdoch's News ... Read Full Answer >>
  6. Is Spain a developed country?

    Spain is a developed country. Nearly all organizations that analyze development status classify it as such. Spain has a strong ... Read Full Answer >>

You May Also Like

Trading Center