Gold Markets Rally Again

NEW YORK (January 30) The gold market looks rather strange and strong during the early hours on Thursday, as it looks like we are going to do everything we can to rally during the trading scenario that we find ourselves in on Thursday. The $2800 level above is going to be a major barrier, but if we can break above there, I do think that we get a lot of momentum after that. There would be a lot of FOMO trading. We’ve been building up pressure for a couple of weeks and we are at the top of an uptrend, so I certainly do not wish to get short of the gold market any time soon.

If we do pullback from here, it’s likely that we would have buyers at plenty of areas, definitely down at the $2,700 level. But I also think that there would probably be significant buying pressure near $2,750 between here and there. So, I don’t know how deep the correction will actually be.

If and when we finally get those fresh new highs, market participants will likely chase gold much higher given enough time, and I think that’s probably just the way this is going to play out. I have no interest whatsoever in trying to get too cute here. I’m looking for short term dips that I can take advantage of in what has been a very strong uptrend for some time, and I just don’t see that changing anytime soon.

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