Gold markets broke out above the $1500 level during the trading session on Tuesday, as it looks like we are ready to go much higher. The $1520 level should continue to be an area where we could see a bit of resistance but breaking above there allows the market to go much higher, perhaps as high as the $1550 level in the short term. Clearly, gold markets are telling us something and it looks as if the rumors of, yet another bank run in China have fueled gold higher.
Price of Gold Video 26.12.19
Pullbacks at this point should be thought of as buying opportunities and therefore it’s difficult to imagine a scenario where I would be a seller. I think at this point we are not only looking at the $1550 level but perhaps even higher than that longer term. I think at this point the market is very likely to continue a bullish case, not only in gold but perhaps even in silver. The US dollar getting hammered would help as well, but I think at this point it’s more or less going to be a bit of a safety trade as well. Chinese buyers are more than likely jumping into the markets hand over fist as we continue to see a lot of concerns with the Chinese banking system. Ultimately, this is a market that suddenly looks very bullish as the $1450 level has offered a significant floor, and it looks like the matching 38.2% Fibonacci retracement level will be respected longer term.
Please let us know what you think in the comments below