Gold Markets Weekly Technical Analysis

The gold market has gone back and forward during the course of the week as we have seen a lot of noisy behavior, and the somewhat flat candlestick tells me that perhaps we need take a bit of a breather after the shot higher. This is a bullish market. There’s no two ways around it. And I have no interest whatsoever in shorting gold. However, I also recognize that this is a market that could continue to go much higher. Pullbacks at this point in time, I think that there are plenty of buyers willing to get involved near the $2,450 level. And then again, at the $2,400 level. This is an area that I think a lot of people will be watching.

If we were to break through all of that, then it’s likely that gold will really fall apart, but you would need to see the US dollar really take off at that point. In general, I think you’ve got a situation where market participants continue to run towards gold because of central bank buying, and now the Federal Reserve pretty much admitted they’re cutting rates. So, I think that helps gold as well. And then of course you have geopolitical concerns. Geopolitical concerns continue to push markets around, and gold is a place where people hide. Central banks are buying it. I mean, there’s just too many things out there to think that gold will fall for a longer term, and so I’m buying dips.

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