Gold Price Analysis – Gold Continues to See Support at $5000 Despite Pullback

Gold Technical Analysis

The gold market gapped lower to kick off the trading session, slipping down to the $5,000 level in the futures market, only to turn around and, as I record early in the New York session, we’ve basically wiped out all of the losses. Gold still looks very strong in general, and I do think that it is probably only a matter of time before we see gold really start to take off again, but a little bit of consolidation would do the market a lot of good.

$5,000, of course, is a large, round, psychologically significant figure, and as a result, I think you have to assume that maybe there was a little bit of profit-taking here. Nonetheless, I do think that the fundamental headwinds are all but gone at this point as traders start to look to the idea of central banks out there hoarding gold and, of course, a lot of concerns about trade policy and debt.

A Global Phenomenon

The risk-off sentiment that seems to be out there that people are tagging gold with is a bit of a misnomer; all you have to do is watch my video on US indices to see that it isn’t true. So, what I would also point out is this is an inherently gold phenomenon because if you look at gold based in Australian dollars, Japanese yen, euros, Canadian dollars, it looks the same everywhere.

This is more about uncertainty and fear and, of course, massive debt around the planet. I like buying dips; $4,800 for me would be the floor in this market.

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