Gold markets pulled back a bit during the trading session on Monday, in what would have been very thin trading. That being the case, it was Martin Luther King Jr. holiday in America so volumes were lacking. Ultimately though, this is an area where you would expect to see support so is very likely that we will get a bit of a bounce. Once we do, this market should continue to grind towards the $1300 level. With the Federal Reserve seemingly and more of a dovish tone than previously thought, I suspect that Gold will continue to find buyers. That being the case, this could be a perfect dip to take advantage of as we continue the overall consolidation.
Gold Price Video 22.01.19
The $1300 level above of course will be a bit resistive and difficult to take out, but I do think it happens given enough time. Once we do get that move, then I think the market will probably move higher in $25 increments as gold tends to do. My longer-term target would be $1400, which breaking above there would open the floodgates to much higher pricing in general. That would of course be the beginning of a major uptrend as it would be breaking the longer-term consolidation that we have been stuck in for some time. Keep an eye on the US dollar, because if it starts to lose value again, then gold will of course get a bit of a bid, but the opposite can be true as well. The Euro has lost some ground as of late but it is supported just below current levels against the US dollar so that coincides nicely with this supportive looking candle.
This article was originally posted on FX Empire
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