Gold Price Analysis – Gold Continues to Rise on Holiday

Gold Technical Analysis

Gold markets continue to rally on Monday in what would be somewhat thin trading, as it was Martin Luther King Jr. Day in the United States. But it doesn’t really matter to me; this is a market that had shown on Friday it was not willing to fall for very long, as the buyers continue to be so aggressive overall.

At this point in time, we have hit an all-time high yet again, and I think we’re probably starting to wind up the market to finally reach towards the $5,000 level that we’ve been talking about for a couple of months now. Based on the ascending triangle that we had previously broken out of and then pulled back to retest, the market could go looking to the $4,900 level on that move alone. But really, once you get to that point, why would the market just suddenly stop and not try to get that magic $5,000 figure?

Buying Opportunities

So, at this point in time, I look at each pullback as a potential buying opportunity. That’s been the case here for months, and I look at the $4,600 level as a potential short-term floor and I certainly look at $4,400 as an area of extreme interest.

The market will face a little bit of psychological resistance in the form of the $4,700 level, and already has, but quite frankly, it’s just another number. With Martin Luther King Jr. Day being on in the United States, volume and liquidity would be an issue at times during the day, but nothing on this chart looks out of the ordinary compared to what we’ve been seeing. So, I remain bullish.

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