Short-term pullbacks continue to be the way forward in this market, as the demand for gold doesn’t seem to be going anywhere at the moment.
The gold market initially fell during trading on Friday, but as the Non-Farm Payroll announcement came out a little bit lighter than anticipated, it appears that the traders are betting on the Federal Reserve cutting maybe a little quicker, or maybe it just convinced a few extra people who did not think it was going to be as aggressive as others.
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Short-term pullbacks continue to offer buying opportunities in gold, and I do think this is a scenario that will continue to play out positively for gold. I like the idea of gold going much higher, and as long as we are above the $4,400 level, then I think you have a real shot at gold reaching $5,000 before it is all said and done.
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Again, I think you will have some choppiness as we start to reach the highs again, but every $20 or $30 as far as a dip is concerned, I'm looking forward to seeing if we get momentum. This is a market that I think still has a long way to go before it is all said and done.
The 50-day EMA is all the way down at $4,260, and as long as we can stay above there, I think we're in good shape. It will be noisy, but it remains positive. I just don't see a world in which you would want to get short gold, and therefore, I think you either hang on to it if you're already long or you buy dips. I have no interest in trying to fight this overall trend, and I just think it is impossible at this point.
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