- Gold has pulled back just a bit during the trading session on Monday.
- That should not be a huge surprise, considering that we had gained almost $250 in just three trading sessions during the previous week, you can’t just go straight up in the air without some type of pullback.
- Sooner or later, somebody will want to collect some profit out of the market.
Furthermore, we are starting to see a little bit less pressure out there on the bond market. So that helps as well. Donald Trump announced during the weekend that electronics coming out of China are exempt from the reciprocal tariffs. So that of course has caused a major relief rally and a lot of assets. So, we’ll have to see whether or not the gold market follows. After all, gold has plenty of reasons for gold to continue going higher, not the least of which of course is the weakening US dollar of the longer term, but we also have to keep in mind that there are a lot of uncertain people out there and they want gold to protect their portfolio.
Beyond that, we’ve been in an uptrend for some time and of course, central banks continue to be massive buyers. So, because of all of this, I think this is a situation where short-term pullbacks
Where Can We Go?
I think offer buying opportunities. Any type of pullback in a bounce, I think, is yet another signal that we’re ready to go higher during the beginning of the year. We finished a major bullish flag, and we broke out above it, which measured for a move to $3300. The $3300 level of course is my target at the moment, and we have not hit it, but we’ve come pretty close. I don’t see anything on this chart that suggests that we won’t continue to go even higher. I have no interest whatsoever in shorting.
Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.