- Gold continues to get a lot of interest in the markets, but at this point, the previous trauma probably needs to be worked through as a lot of traders may have been liquidated.
Gold markets have been very noisy during the trading session on Thursday as we are hanging around the $5,100 level. The $5,100 level has been a significant short-term resistance. If we can break above the $5,100 level, then I think we can go much further.
Quite frankly, it has been very noisy as of late, but short-term pullbacks continue to see plenty of buyers, especially when we get close to the $5,000 level. Even if we were to break down below there, I think you've got a situation where there are plenty of buyers underneath at the $4,800 level that could come into the picture to offer support right along with the 50-day EMA.
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Buying the Dips for Value
I have no interest whatsoever in trying to get too cute with this market and try to short, even if we do see a pullback. I think looking for value is probably the best part of how to trade. At this juncture, we have to pay close attention to the idea of whether or not you are getting value.
After the dramatic candlestick from a couple of Fridays ago, it does make sense that we have to burn some energy off here, but I don't see any reason to start selling. Again, looking for value, buying dips, hopefully seeing a breakout sometime in the future - maybe the next couple of weeks - would be the best-case scenario.
You do not want this market to get impulsive to the upside right away; that would be more danger just waiting to happen. With this, I’m a buyer of dips, and I also recognize you may have to be somewhat nimble but positive oriented.
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