Gold Technical Analysis
The gold market continues to hang around the $5,000 level as we continue to wait for inflationary signals or lack of inflation. The Core PCE numbers will, of course, be the big mover for the day.
As things stand right now, the $5,150 level above is a significant barrier, and breaking above there would be very bullish for gold. On the other hand, if we break down from here, we could see a significant support attempt at the $4,800 level. After that, you have the 50-day EMA and the uptrend line.
Finding Value in the Gold Market
Ultimately, this is a market that I think given enough time will go higher, but we are in the process of stabilizing after a massive meltdown. With this situation being the way it is, I think you have to look at this as a market that you are trying to find value, but that does not necessarily mean that you chase it right away.
I think short-term drops will end up being the buying opportunity that many of you will be looking for. The overall trend continues to be very bullish. Central banks around the world continue to buy gold, and of course, we have plenty of geopolitical issues out there that continue to plague the market.
The United States and Iran is just the latest, and then of course we have questions about tariffs and trade and central bank easing. So, it all comes together. I do think gold is going higher over the longer term, but we need to work off some of the trauma that we have recently experienced.
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