- Gold has been very strong again during the month of March, and I suspect that the month of April see a lot of the same.
- We still have a lot of the same issues that we have had for quite some time, and they just don’t seem to be going anywhere.
For example, the tariff situation seems to be getting worse, not better. That being said, it does look like there will be some places where tariffs will have to be levied according to the Americans, which of course will perhaps kick off a “tit-for-tat” trade war. If that ends up being the case, then a lot of traders look at gold as one place to hide from that economic damage. Furthermore, we also have a serious debt issue around the world, and I think that will continue to be something that needs to be paid close attention to. Ultimately, when it comes down to it, gold is money, and people are looking to get their hands on it.
I do believe at this point in time we probably will get a pullback sometime in the month of April, but in the longer term speaking, there is nothing on this chart nor are there any reasons from a fundamental analysis standpoint to think about shorting this market. In fact, it would not surprise me at all to see the $3000 level hold as a major floor in this market. From a technical analysis standpoint, there is a bullish flag that we broke out of during the month that measures for a potential move to the $3300 level. Again, there is nothing on this chart that suggests we cannot get there, but we will get there in a straight line.
Unfortunately, one of the big drivers of the market right now is headline risks. The biggest one is coming out of the Oval Office, as the president likes the idea of keeping people on their toes when it comes to negotiations. Simply put, it’s probably just going to be easier to own gold than not.
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