Gold Price Analysis – Buyers Look for Value on Thursday

Gold Technical Analysis

The gold market initially pulled back a bit during the Thursday session, testing the $4,800 level only to find buyers again, which is not a huge surprise considering just how ridiculous this has been to the upside. There is no real stopping the upward trend, and with that, you have to accept the fact that anytime it dips, you’re probably going to have to be fairly quick to pull the trigger.

The $5,000 level at this point in time, I think, is the goal. I thought it would be sometime in the summer; turns out it’s very likely to be sometime in the next couple of weeks, but here we are. Regardless, the direction all said the same thing, that it is a bullish market.

A One-Way Direction

I don’t see that changing anytime soon with central banks around the world looking to buy gold and, of course, the fact that the geopolitical situation continues to be messy at best. The market is likely to continue to see a lot of noise, but then again, you can see that there’s only been one direction and has only been one direction for a while.

There was an ascending triangle that we broke out of a while back that measured for a move to $4,900. We’ve basically done that during the previous session, so I think at this point in time, it’s all about the psychology and the magnetism of the $5,000 level being the most important level in the market at the moment. As far as selling is concerned, I don’t even have that scenario in the back of my mind at the moment.

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