Gold Price Analysis – Gold Continues to See Tight Range

Gold Market Analysis Technical Analysis

The gold market has been very noisy for the last several days, pretty much the entire week, and now we find ourselves hovering around the crucial $5,200 level. The $5,200 level of the course is a large, round, psychologically significant figure that a lot of people will be watching very closely.

If we pull back from here, then I think there are plenty of buyers underneath, especially near the $5,000 level. The $5,000 level is a large, round, psychologically significant figure, and it will attract a lot of attention. The 50-day EMA is racing to get there, and I do think eventually we may see that happen, but ultimately, in the short term, I think this is a market that is just simply trying to figure out where things go next.

Global Influences on Gold

Keep in mind that gold is being bought by central banks around the world, and of course, people are watching the Federal Reserve because they anticipate interest rate cuts. Both of those should drive gold higher, not to mention the geopolitical issues out there. We still have worries with the Iranians and the Americans and Russia in the Ukrainians and a whole litany of other conflicts and trade wars going on.

So, really looking at this, I think you have a situation where when people see a little bit of a dip in gold, they look at it as potential value. I am most certainly in that camp, and I do believe we eventually get back towards $5,600; it’s just that it’s probably going to be more or less a grind to get there.

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