Gold Forecast: Continues to Power Higher

• The gold markets rallied again during the day on Thursday, breaking above the $1900 level at one point.
• By doing so, the market has shown itself to be rather resilient and it should continue to get plenty of interest as it has been one of the better performers this year.
• At this juncture, it is difficult to imagine a scenario where you would want to be short of this market, so I think any time the market pulls back, you must be looking at it through the prism of trying to find value.
• The $1900 level courses a large, round, psychologically significant figure that will attract a lot of attention in and of itself, but I think we also must keep in mind that the market is likely to see buyers on every dip. In fact, we’ve already seen that happen during the day itself.

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At this juncture, the market looks as if it is hell-bent on going to the $2000 level, so I’m going to play right along with it. That doesn’t necessarily mean that I jump in at any given moment, but I do like the idea of short-term dips. The gold market has been so bullish it hasn’t really given us any juicy dips to take advantage of, but it is worth noting that we managed to get an opportunity earlier in the day on Thursday as the market was freaking out about CPI.

I Have No Interest in Selling Gold

The so-called “golden cross” formed earlier, and it seems like the longer-term investors are more than willing to jump in and take advantage of the longer-term “buy-and-hold” attitude that the market has suddenly shown. Ultimately, this is a market that will continue to find plenty of attention, but it desperately needs some type of flush lower to attract even more traders.

At this point, you do have a lot of people chasing the market, and if you traded with a reasonable position size, you could probably be forgiven for doing the same. I still think 2000 is your target over the longer term, but it’s probably going to take a while to get all the way up there. With that in mind, I like gold, but have no interest in selling it, at least not until we break down below the 200-Day EMA which is all the way down at the $1780 level or sell.

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