At this point in time, everyone knows that the gold market is very bullish. With this latest move, it only confirms more of what we already knew.
Gold continues to show plenty of strength during the trading session on Monday as traders continue to push this market to the upside. At this point in time, I think the market is going to be one of those that continue to see more of a buy on the pullback type of situation, with the $4,600 level being an obvious candidate for a floor.
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On Monday, there would have been a lack of volume due to the fact that it was Martin Luther King Jr. Day in the United States, and of course, that greatly influenced the futures markets and when they were open, not to mention the volume. With this being the situation, it's obvious to me that this market probably would have been even more bullish on Monday if everybody were at work.
After all, the United States and the European Union no longer have a trade deal as the spat over Greenland continues. It really doesn't matter at this point in time because, quite frankly, the market is going to continue to follow the overall momentum anyway.
Targeting $5,000 an Ounce
From a technical analysis standpoint, we had broken out of an ascending triangle, pulled back to test that ascending triangle, and continued higher. The measured move from the ascending triangle suggests that we could get to $4,900 an ounce, and quite frankly, I don't see how we don't at least test $5,000 an ounce.
This is a market that has been rallying quite significantly for some time, and we have the central banks around the world continuing to accumulate gold, which is a major problem with the massive amount of debt that the world sees.
I have no interest in shorting this market, and any time that it pulls back, I look at it as a potential buying opportunity as we continue to find value with cheap gold every time we print a negative candlestick.
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