During the last Friday’s session, the gold markets fell after a nonfarm payrolls number in the United States came out better than expected. The positive data had an effect on few markets, and now it looks as if the gold market is trying to take a little bit of a breather. Gold did break out recently however, and the new data doesn’t change that fact. In fact, gold markets are expected to reach much higher levels. Such pullbacks should be viewed as a buying opportunity.
With all of the volatility in the market it makes sense to simply try and ride out a non leveraged position using the ETF, and leveraging things off when it does look like the market showing signs of strength. Selling gold is not a good idea as the yellow metal appears too strong at this point in time.
The U.S. Federal Reserve will continue to print US dollars, and under these circumstances precious metals in general will do well.
Looking at the fundamentals, it is reassuring that not only the Federal Reserve is working to devalue its paper currency, but so is the Bank of Japan and more than likely the European Central Bank. With so many central banks working against the value of their currency, it makes sense that precious metal such as gold continue to climb.
Once, the gold price breaks above the $1800 level, the market will continue to rise rapidly. Ultimately, the market could reach a level of $2000 before the year end.
Resources for gold investors:
- Top Rated Books for Silver Traders Review
- Top Rated Books for Gold Traders Review
- Social Media for Stock Market Traders
