- The gold market has rallied again, gaining over 3 % early in the session on Monday, as traders continue to look for some type of safety.
- All things being equal, this is a market that you have to be very cautious with because it is a runaway market, and the last thing you want to do is become a bag holder.
- And what I mean by that is buying at the very tops.
Ultimately, it's an uptrend. You do not want to fight that, but it's clear that we are overbought by just about any metric that you can imagine given enough time, I would love to this market grind its way back to the $3,200 level where I think a lot of buyers would be waiting.
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However, there is also the possibility that we could not see that and just continue to go higher. Unfortunately, that's been the way this market has been behaving for a while. It's just been so runaway that there's no real way to get some type of decent at least value-based entry there are just so many people chasing this market at the moment that it does continue to look very one-sided, those are the most concerning moves that I have been part of in the past. Although I'm not calling the top here, I do recognize that you could find yourself in a lot of trouble very quickly if you over levered it yourself chasing this market
Where We Could Go
I don't really see anything to keep this market from going to the $3,500 level. It's just that we've gone so far in such a short amount of time that sooner or later somebody is going to try to close out their position in order to take advantage of all of the profit that they've made on paper.
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