Gold Price Analysis – Gold Continues to Push Higher for the Week

Gold Markets Weekly Technical Analysis

The gold market has rallied during the bulk of the week, and that should not be a huge surprise cause we just a couple of weeks ago broke out of a massive ascending triangle. Speaking of that ascending triangle, it does suggest that we could go as high as $4,900, and really, at that point, I don’t know how the market doesn’t at least attempt to get to the $5,000 level.

Short-term pullbacks are buying opportunities and have been for quite some time. The $4,600 level is a major support level as it was massive resistance.

Central Bank Behavior

Ultimately, this is a market that’s moving higher based on central bank behavior. Not only the accumulation of gold by central banks, but the fact that most central banks are either somewhat loose with their monetary policy or getting there. The ones that aren’t are sitting still. There are very few central banks around the world raising rates.

So, with that being the case, I think gold continues to get a bit of a bid, especially with the geopolitical situation and the massive debt loads. Simple momentum tells you the same thing, so I just don’t see how you get short of gold anytime soon. We would probably have to break down below the $4,000 level before I actually would have that conversation.

The $4,600 level would be an ideal buying point, but if we break above the high of the week, then I think we go looking to the $4,800 level next. This is a market that’s a little extended, but we did spend some time working off some of that excess froth a couple of months ago, and it may do gold some good. I remain very bullish.

If you’d like to know more about how to trade gold and silver, please visit our educational area.