Gold markets initially took off to the upside during the trading week, and then plunged as we continue to see a lot of noisy and erratic behavior in financial markets overall. With this being the case, I think you’ve got a situation where the market participants continue to look at the $2,400 level as important, and I do think we are going to try to get there given enough time. Once we break above there, then we could go looking to the $2,500 level over the longer term. The market has been very noisy over the last couple of weeks, and at this point I have to assume more of the same nonsensical chop will continue to be what we’re looking at.
Short term dips should continue to be buying opportunities because quite frankly, there are plenty of geopolitical concerns out there that could continue to keep the gold market somewhat attractive. Furthermore, if interest rates continue to drop, and they most certainly did during the day on Friday, it should continue to benefit gold as well. Watch those bonds and they start to get picked up.
