Gold Markets Technical Analysis

The gold market initially pulled back just a bit during the early hours on Wednesday but have turned back around to show signs of life yet again. This is a market that’s been stubbornly bullish and that of course is actually a good sign. So, I think it’s probably only a matter of time before we break above the $2,480 level and go looking to the crucial $2,500 level. In general, I think that there are quite a few reasons to get long of the gold market. For example, all of the geopolitical issues alone probably put a certain amount of money into this market.

Furthermore, we have central banks around the world doing everything they can to keep the markets from crashing via interest rate cuts and of course, loosening monetary policy in general. The CPI out of Great Britain was a little lower than anticipated early in the session. And although that doesn’t have a direct path to gold, it does suggest that more likely than not to start coming down in yet another area of the world.

So that I think in and of itself probably continues to propel gold higher. And quite frankly, the biggest central bank in the world, the Federal Reserve, is almost certainly going to be cutting rates in September, so the market’s trying to get ahead of that, and therefore I think we will continue to see a lot of interest in this market going forward. In fact, I don’t really see a scenario where I would be a seller.

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