- The gold market initially fell during the trading session here on Friday but then turned around to show signs of life again.
- By doing so, the gold market looks fairly healthy, and I think we’ve got a real shot at this market trying to rally towards the $3,400 level again.
- That being said, keep in mind that gold’s been very noisy for a couple of weeks and I think what we are looking at here is a situation where we may just consolidate overall in this $300 range with the $3,200 level on the bottom offering support and the $3,500 level on the top offering resistance.
I do suspect this is a market that will remain very noisy in general, especially as there are a lot of concerns about the trade war. President Trump can’t stay off of social media to share his latest random thought with people, it is going to move the gold market.
US/Ching Talks
While the negotiations with the Chinese over the weekend is a good sign, the reality is the expectations are probably somewhat low and almost zero if you are thinking along the lines of getting an actual trade deal. With that being said, I think you have to look at this as a market that is still very bullish until proven otherwise, and short-term pullback should continue to be potential buying opportunities.
When you look at the weekly chart, it does look a little uglier because we formed a shooting star followed by a negative candlestick and by this candlestick for the week that although not a shooting star, we did give back about half the gains. It’s also worth noting that commercials in the futures markets are now net short. So, this is going to be interesting. That doesn’t mean that the market has to fall, but it does mean that there is a certain amount of hesitation to get aggressively bullish here.
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