• Gold markets have gone straight up in the air on Friday, as we are now threatening the $1920 level. It’s worth noting that the market is getting a little overdone at this point, so there’s almost no way to chase this market right now because quite frankly you will be taking a very risky trade.

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• The markets have been bullish for quite some time, but unfortunately have not offered particularly clean moves on pullbacks, so it’s been difficult to get involved.
• You cannot chase it now that it has made this move. These impulsive moves do end up pulling back sooner or later, and quite frankly, they quite often pull back quite sharply. It is at that point that I will be looking for a value play.

The market will more likely than not get to the $2000 level, which was my target for later this year. At this point though, we may even see that in the next few trading sessions. Again, you can’t chase this trait all the way appears, because the odds simply are not with you. We could see a sudden spike in the US dollar, and that could cause gold to drop $50 one day. The last thing you want to do is be on the wrong side of that trade.

Market Has Plenty of Buyers Underneath

Ultimately, this is a market that I think has clearly shown the directionality you should be looking at, but now it’s simply a matter of being patient and waiting for the opportunity to come to you. The market is one that I have no interest in selling, regardless of how suddenly it could turn around. I will be looking at this at the end of the trading session every day, seeing how the daily candlesticks play out. I will keep an eye on this market, but right now it’s just a matter of waiting to see how things play out.

If you are already long of this market, first congratulations. This has been an excellent trade, even though you have had to be very patient at times. This is a market that I do think has plenty of buyers underneath, and therefore if you are already in profit, there’s not a whole lot more to do other than take advantage of the momentum.

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