Gold Price Analysis – Gold Continues to See Strength as War Breaks Out

Gold Technical Analysis

The gold market continues to see upward momentum as we see a lot of upward pressure anyways, and then you have to keep in mind that the war breaking out in Middle East obviously has a major influence on what people are expecting gold to do. So really, in a market that was already bullish, this shouldn’t be much of a surprise. That being said, what I do find a little bit surprising is that we’re not just ripping through the recent high.

Market Levels and Strategies

It looks like we’ll probably challenge it somewhere near 5500. Whether or not we can stay above there remains to be seen, but I do think you’ve got a situation where short-term pullbacks continue to be buying opportunities more than anything else. I just don’t think this is a scenario where you are looking for the market to pull back and take advantage of that. You are looking for short-term pullbacks to give you an opportunity to find gold cheap.

With that being said, the 5000-level underneath, I think, is your floor, that’s assuming that we even get that far to the downside. I don’t even think we test that. More likely than not, somewhere around 5200 is where your short-term floor is. Gold was positive to begin with, the United States, Iran, Israel, and everybody else jumping into a conflict, of course, only gives it that much more momentum. I do think we’ll see a fresh new high, although I’m the first to admit I’m kind of surprised that we’re not even more bullish than we are at the moment.

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