Gold Price Analysis – Gold Continues to Hover Above Big Level

Gold Technical Analysis

Gold markets continue to be very noisy as we are hanging out right around the 5,100 level. An area that has been important over the last couple of days, and I think this remains a buy on the dip type of market. I don’t have any interest in shorting it, and I do think that 5,000 matters.

If we were to break down below there, then we could find ourselves looking to the 4,800 level, possibly even the 4,600 level. But we will have to wait and see how that plays out. Ultimately, I like the idea of finding short-term dips that I can take advantage of and eventually once we break to the upside, we could see this market go all the way to the 5,400 level again.

Geopolitical Confusion and Market Trauma

Having seen a horrific move to the downside recently, I think there is a little bit of trauma attached to this market and I do believe that what we will see here is an environment where value hunters will continue to get involved. But I also recognize that this is a market you cannot get too aggressive with. I think it has got to find its feet right here and 5,000 does make for an interesting fulcrum for price. I think that is part of what is going on.

There are geopolitical concerns out there, such as the Americans and the Iranians talking. There are concerns about debt around the world and there are central banks around the world looking to cut rates, but there are also some looking to raise rates. And that is part of what you are seeing here in this confusion.

The speculative bubble did get a little out of control and now people are trying to see whether or not we can continue to rise. Longer term, I think we do, but we will get the occasional pullback, which should offer opportunities.

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