Looking at the chart, I think it is a “buy on the dips” scenario.
Gold markets fluctuated during the trading session on Friday, as the world awaited the US jobs numbers. Beyond that, we are waiting to see when the US elections will be finalized and certified, although it is starting to look more likely that we will see Joe Biden become president. I like the idea of buying gold given enough time, but the next question is whether or not the stimulus package is going to be anywhere near the size of the one that the market had anticipated. I do not think that is the case, so it is likely that we will see a short-term pullback.
The short-term pullback should be something that you take advantage of, as we are trying to build a base for a larger move. Central banks around the world will continue to flood the markets with liquidity, just as various governments will. This will drive down the value of paper money, and have people looking for hard assets such as gold. old is one of the first places that people run to in these situations, so I would anticipate a lot of interest. The market pulling back towards the 50-day EMA could be a buying opportunity with an eye on the $2000 level, which has been important more than once.
I do not have a scenario in which I am willing to sell this market, because the uncertainty out there will continue to cause major issues. Then, we have the fiat currencies around the world taking a beating. Eventually, gold spikes drastically due to reckless spending, but that does not mean that it happens in the short term. I think a pullback makes sense, but that pullback gives you an opportunity. The $1900 level would be interesting from a buying opportunity, just as the $1850 level would be. Finally, the $1800 level would be an ideal area since the 200 day EMA sits there, and that was the scene of a major breakout that sent gold much higher in a very short amount of time. Looking at the chart, I think it is a “buy on the dips” scenario.