Gold Price Analysis – Gold Continues to See Upwards Momentum

Gold Technical Analysis

The gold market continues to be very noisy as we are hanging around just above the 5,000 level. The 5,000 level is a large, round, psychologically significant figure that a lot of people will be watching, as it continues to see headlines coming out with fanfare of sorts.

This market tried to break above the 5,100 dollars level a couple of times in the last 5 or 6 sessions but has not been able to do so. If and when it can, then 5,400 dollars would be your next target. After that, we could see fresh, new, highs.

Psychological Barriers and Support Levels

Short-term pullbacks open up the possibility that we could test not only the 5,000 dollars level, but eventually the 4,800 dollars level. The 4,800 dollars level is an area that has seen support previously, followed by the 50-day EMA underneath offering support. At this point, we could very well see a lot of value hunting going on.

I think it’s probably only a matter of time before we go higher because central banks around the world continue to accumulate gold and there are a lot of concerns out there when it comes to global debt and geopolitics.

All things being equal, I think this is a situation where you’re looking for a little bit of value to take advantage of and start buying. I think you have a situation where traders continue to look to the upside and I have no interest whatsoever at this point in shorting gold as the markets are so strong.

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