Gold Markets Weekly Technical Analysis

The gold market rallied rather significantly during the course of the week to break towards the $2,500 level. More importantly, we broke above the $2,480 level that an area of course has been important paid close attention to as it looks like we are offering resistance. But now, it does look like we are finally chewing through a lot of that. And I think the gold market will more likely than not continue to go much higher.

After all, there are a lot of reasons out there to believe that the gold market should continue to go higher due to the fact that the central banks around the world are buying gold. Interest rates are starting to fall and that makes gold a little bit more attractive and then of course we have all of this geopolitical issues out there when it comes to war and the economy. With all of that being said, short-term pullbacks offer buying opportunities and I think your longer-term trader is about to see another leg higher.

That doesn’t mean that it’s going to be easy and it doesn’t mean that it’s going to be clean, but I do think it’s very obvious on this chart that you cannot be a seller of gold is just simply far too strong. I see massive support underneath a major trend line and of course the crucial $2,400 level. In general, this is a market that I think continues to see a lot of buying on the dip and will eventually, once we break above the $2,500 level, really start to squeeze to the upside.

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