Gold Forecast 21/01: Prices Continue To Climb (Chart)

(MENAFN- Daily Forex) Gold continues to run higher on Tuesday, as the markets focus on geopolitical issues.

Old markets have rallied again during the trading session on Tuesday as the world continues to worry about geopolitics. This has been a strong move, and quite frankly, this is a market that I think continues to go much higher.

But you also have to keep in mind that the market has maybe gotten a little overstretched in the short term. So, I think if you're not involved, you will be looking for some type of short-term pullback to get involved in the market to the upside.

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I certainly think the most obvious situation to avoid here is shorting the gold market. I just don't see how you can get away with shorting as the market has continued to look at this through the prism of a big momentum-driven situation where we will eventually go looking to the $4,800 level.

Longer term, I still think that gold goes to the $5,000 level, and we now have a bit of a support level near the $4,550 level as well is moving on geopolitics

Gold is moving on geopolitics; it's using the shrinking US dollar during the day on Tuesday as yet another reason to get impulsively bullish.

EURUSD Chart by TradingView

But over the longer term, one of the things that you have to pay attention to is the fact that there's so much debt out there. Gold will be used to pay off debts; that's just how it's done.

Ultimately, the market participants continue to look at this as a runaway train that will eventually reach $5,000, and at this point, it might actually be quicker than we thought. All things being equal, it's not until we break down below $4,200 that I even begin to have the conversation of the trend.

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