Gold markets initially pulled back during the trading session Monday but turned around to recover some.
It is currently hanging around the 1550 mark, an area that had seen a gap higher previously.
The markets are trying to feel out whether or not there is a “risk on” or “risk off” flavor to everything.
So, now it very likely that we will see choppiness and perhaps the markets tread water for a while as we had rallied significantly.
That said, I like the idea of going sideways and waiting for an impulsive candle to the Northside or perhaps a bit of a pullback in order to take advantage of what I believe is a longer-term uptrend.
Gold Prices Video 14.01.20
It is wishful thinking that suddenly tensions will disappear between the Americans and the Chinese, and the Americans and the Iranians.
So, it is just a matter of time before gold gets a boost, and I would be very interested in gold down at the 50-Day EMA if it pulls back towards that mark. If not, then a break above the 1600 mark would be the next leg up waiting to happen.
Gold is something that does tend to move in big waves, so giving the market a bit of an opportunity to offer some value the best way to go. We wait, We see.