• In my daily analysis of the commodity markets, the first place I always come to is the gold market, as we have been in a major uptrend for some time.
• It certainly looks like that will continue to be the case, as the Monday session has seen traders blow through the top of a shooting star from Friday and then overtake the crucial $2900 level.
• By doing so, it looks as if gold is ready to go much higher, and therefore I like the idea of buying it on each and every dip.

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Technical Analysis

Obviously, breaking above the $2900 level is a noteworthy event, and traders will be paying close attention to this market as a result. Nonetheless, I also recognize that we have a situation where the market has gotten a little bit ahead of itself, so it’ll be interesting to see whether or not this momentum can keep going. I do think that eventually we will go higher, but I recognize that being a little stretched makes this a bit of a tricky market to be involved in at the moment.

Leave at this point in time each and every dip will be bought into, and I think that we have a significant amount of support at multiple levels, including the $2850 level, as well as the $2800 level. If we were to break through both of those, then we could be looking at a deeper correction, but right now I just don’t see that being the case. In fact, I anticipate that the market will reach the $3000 level sooner than most people thought, as we continue to see a lot of concerns about debt and concerns over the flow of gold coming out of London and heading toward New York. This has been an increasingly large amount, and this of course has an influence on markets overall.

At this point in time, I have no interest whatsoever in trying to get short of this market, and I do believe that gold will be one of the better performers this year. In fact, I believe that we go much higher than $3000, but for now that is my target.

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