Gold Price Analysis – Gold Continues to Power Higher on Tuesday

Gold Technical Analysis

The gold market has rallied rather significantly during the trading session on Tuesday, as we continue to see gold rally quite drastically. The geopolitics around the world right now, of course, are quite telling for a strong uptrend in this market, and I think we’ve got a situation where anytime this market pulls back, you have to be a buyer of gold.

That’s been the case for ages. Right now, $4,600 ends up being the floor in the market. I do think based on the previous ascending triangle we go looking to the $4,900 level, and I just don’t see how we don’t get there fairly soon. In fact, much sooner that I originally thought.

Central Bank Buying and Future Targets

The market, of course, will have to deal with a lot of headlines, but quite frankly, between central banks around the world purchasing gold the way they are and the geopolitics being as rattling as they are, it makes quite a bit of sense that gold continues to show signs of strength. I do not see this changing anytime soon in this environment.

I certainly wouldn’t short this market, and I look at this as a market that anytime it drops, you have to start looking for the bounce that you can take advantage of based on value in the gold market. Given enough time, I do think that we eventually test the $5,000 level, which at one point sounded insane and at this point it feels pretty much inevitable at this point in time.

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