Gold Markets Continue to Find Buyers

Gold Market Technical Analysis

Gold markets have rallied after initially gapping higher during the trading session on Tuesday again, showing signs of life. That being said, it should be noted that the gold market has the 50 Day EMA racing towards current pricing, and that could come into the picture as well. The market has been in an uptrend for a long time but recently had fallen hard from an overbought condition. The question now is whether or not we have a situation where we are grinding away sideways to work off that froth, or something has changed?

At this point, it looks like it is all about inflation, and inflation is certainly going nowhere at this point. Because of this, I think gold will continue to catch a bit of a bid, especially as the central banks around the world continue to be “behind the curve.” In other words, economic growth is also going to slow down so which could drive more money into gold to protect wealth.

Commodities, in general, are rallying, and gold will be no different at this point. The market has had an explosive move over the last 24 hours, and now threatens the idea of breaking out above the $1950 level. If we can break that, then the next target will be the $1970 level, and then the $2000 level. As long as we can stay above the $1900 level, I believe that this market is still in an uptrend, as there is a major pushback every time we try to break down below that level. If we were to break the $1900 level, then we could drop $50 rather quickly.

Gold Price Predictions Video 06.04.22

For a look at all of today’s economic events, check out our economic calendar.