• You can see that the gold market initially fell during the trading session, but it does seem to be catching its support a little bit as the Americans step on board.
• And it'll be interesting to see how this plays out, mainly due to the fact that it had plunged so drastically before due to the idea that the Federal Reserve may have to stay relatively tight.

However, it also looks like we have a scenario where gold is trying to do everything it can to perhaps find its footing, and if it does, that could be an excellent entry. Keep in mind that we have the FOMC meeting during the session on Wednesday. So that has a certain amount of influence as well. So do be cognizant of this.
 

Look for Value

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With that being said, I think you look at this through the prism of a market that offers value, but you don't want to get too big ahead of the FOMC meeting because quite frankly, you could get a nasty surprise and you never really know what the market is going to do in reaction to, for example, the press conference.

So ultimately this is a situation where I'm a buyer. But if we break down below $2,280, I might be inclined to simply wait for even better pricing. And I do think that's possible. So, with this being the case, the market is likely to continue to see a lot of volatility, but ultimately, we'll try to rally and go looking towards the $2,400 level.

One thing that captures my attention is the fact that the market sold off so drastically last Friday yet has just sat at support. This is generally a good sign and suggest that perhaps the market is much more resilient than a lot of people believe. If that’s going to be the case, I think it’s probably only a matter of time before we rally. Even if we do not, then the market should offer value at an even lower level, which becomes even more interesting.

Geopolitical issues, central banks around the world cutting rates, and of course, a general uneasiness should continue to make gold attractive for most buyers. Beyond that, central banks continue to be net buyers of gold, so that also means that there’s at least one huge buyer in the market at any time.

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