Gold markets rose again on Monday as the risk on trade came back. The markets rose above the $1,650 level a few sessions ago, and the hammer on Friday has us suggesting that the market could see a building of upward pressure in this contract.
Monday saw this confirmed as the market shot to roughly $1,680 before pulling back slightly. While the market looks healthy going forward, it also looks like we might see more of a grind and less of a straight shot up. However, many of the fundamentals are suggesting that the value of gold should continue to rise. We are long and aiming for the $1,700 mark in the meantime. We also would consider buying on the pullback as long as we stay above the $1,650 level.
Gold Forecast January 24, 2012, Technical Analysis
Gold Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3