- As traders continue to chase prices, the gold markets continue to see a lot of noisy behavior.
- Right now, the market is still essentially a "buy in the dip" opportunity. Having said that, it is quite difficult to become negative on this market right now.
Gold
As you can see, following the somewhat disappointing US jobs report, the gold market has been rising throughout the trading session. Having said that, this is a saturated industry. Furthermore, I believe that gravity does eventually reappear. I believe that if enough time passes, there will be a sizable decline, and that will be your chance. The way things are acting all the way up here, you just can't chase gold that way. After all, we broke out $100 ago, so in my opinion, we need to at least retrace $50 before we even remotely resemble a market that you should try to enter.
We'll have to wait and see how that turns out, but if we do continue to move higher, there will be other ways to play this, most likely involving shorting the US dollar. Gold will continue to rise due to numerous geopolitical concerns, and interest rates are another factor. It might also be beneficial if US interest rates keep declining. Having said all of that, I do believe that gold is something you should hold onto for a long time.
But after it's gone up the way it has, you might not want to purchase it. It makes no sense to pursue it. Simply wait for a reasonable price before grabbing it. Consider this to be less of a trade and more of an investment. The $2075 mark, which had been so significant for so long, has now been decisively broken by the market. Thus, I believe we can aim much higher. But in the end, I believe we have a situation where all you have to do is wait for the gold to go on sale in order to profit from it. Going after it here might pay off in the end, but sooner or later you will have to endure a significant setback.
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