Gold markets initially fell during the month, but found enough support just above the $1200 level. Ultimately, this is a market that should continue to go back and forth in the overall consolidation between the $1200 level on the bottom and the $1300 level on the top. Ultimately, the last week of the month saw the market eventually rally after initially tried to dip below the $1250 level. That is “midpoint” between the 2 barriers of the market, so having said that I think that the bullish pressure will continue to reach towards the $1300 level. I think that short-term pullbacks offer buying opportunities, and I will look at gold as an opportunity to work against the value of the US dollar, which will probably be very bearish due to the Federal Reserve becoming much more dovish than originally thought.
Continuing to buy dips
I am adding small positions to my core position in gold, as I believe we continue to go much higher. If we can break above the $1300 level, the market should then continue to go much higher. I don’t know that we are going to break out, but I do think that it would not be surprising at all to see the $1300 reached during the month of August. I have no interest whatsoever in shorting, at least not until we were to break down below the bottom of the candle from the last week of July. Until then, I think that the buyers are in control, and with the soft Federal Reserve, and makes sense to gold should continue to rally. Gold markets do tend to be a bit volatile, and volume might be a bit soft and low during the month as it is vacation time, but ultimately I think we are looking to the upside.