Gold Price Analysis – Gold Breaks 5K Again

Gold continues to rise as we break above $5,000 for the second day in a row during early Wednesday trading.

Gold

Gold daily candlestick chart. Source: TradingView.

The gold market has broken higher during the trading session here on Wednesday to break above the $5,000 level. The $5,000 level, of course, is a large round psychologically significant figure that a lot of people will be paying close attention to. If we can stay above there, that would be a very bullish sign and could send this market much higher, perhaps even trying to get back to the highs.

Friday’s action last week was horrific, but since then we have seen a lot of pushbacks. It will be interesting to see how this plays out. Right now, I think it remains a “buy on the dip” market, but if it starts to sell off viciously again, you have to get out quickly.

Market Volatility and Central Bank Demand

This is the type of market that is very dangerous because you have seen a massive capitulation to the downside and now, we are trying to continue a trend that was relentless before then. There is a lot of volatility and a lot of issues, but when you look at gold, there are a lot of central banks out there willing to accumulate and still looking to do so.

Plus, we have plenty of geopolitical issues out there that come into the picture as well. Overall, I think this is a market that you have to remain positive on from a longer‑term standpoint, but you also have to recognize that things could be a bit noisy in the meantime, and you have to be very cautious with your position size. If we were to give up the $4,600 level, I think that would be a very bad sign, but as things stand right now, we are light years from there, so I am not overly concerned about it.