Image Source: Pixabay

Video Length: 00:02:15

The gold market has rallied again during the trading session on Monday as traders are reacting with quite a bit of fear to a whole host of things. Not the least of which will be the fact that the Department of Justice in the United States is now investigating Jerome Powell.

That being aside, the reality is that the gold market has been going higher for some time and really nothing has changed. We still have massive amounts of debt to worry about around the world. We have a Federal Reserve that is likely to cut rates, and of course, we have a situation where just the simple momentum favors the upside.

We had recently broken out of a major ascending triangle and that ascending triangle measures for a move to $4,900. Whether or not we get there, who knows? But I don't see anything on this chart that tells me we can't.

(Click on image to enlarge)

In Fact, I Fully Believe We Will See $5,000

In fact, I fully believe that sometime this year, we will see $5,000 for the gold market. How long that takes, again, you don't really know, but you have to assume that it is probably a couple of months down the road.

The reality is though we could have a situation where traders actually look at this and continue to just follow the leader. The $4,400 level should continue to be support as it was previous resistance and the fact that we pulled back there and then bounced is perfect technical analysis, breakout then retest.

The 50-day EMA follows that triangle as well and with this being said, I think you have a situation where it's all up from here. Given enough time, I fully anticipate that gold continues.

More By This Author:

Silver Forecast: Will Silver Be Able to Stay Above $80?
Pairs In Focus - Gold, EUR/GBP, Silver, WTI Crude Oil, EUR/USD, GBP/USD, Nasdaq 100, USD/MXN
USD/JPY Forecast: Carry Trade Momentum Builds