- Gold markets have had a very bullish month of October, and certainly there is a lot out there going on at the moment that could cause gold to continue to be noisy.
- Not the least of which of course is going to be the war between Israel and Hamas, and whether or not the entire region is going to kick off into a larger war.
- Because of this, there is probably going to be a bit of a bid for gold on pullbacks, and I believe that the month of November will probably play out that way.
It is worth noting that the mod had been so bullish that one could see a little bit of a pullback at this point, especially as the $2000 region is an area where we would see a lot of psychological resistance. If we can break above there, then it’s possible that the market could go looking to the $2060 region in the spot gold market, which is where we peaked last time. We have seen a bit of a triple top in that area, going back to July 2021. Breaking through that region would be a very bullish sign, allowing gold to take off to the upside for a longer-term “buy-and-hold move.”
That being said, if we were to break back below the $1900 level, I suspect that would be a very negative turn of events for the market, and we could see a drop all the way down to the $1800 level. That would also be the 61.8% Fibonacci or to his level of the bigger move, but at this point it seems as if the market is likely to see plenty of buyers between here and there. All things being equal, I like the idea of buying dips overall.
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