Gold Price Analysis – Gold Struggles on Tuesday

Gold Technical Analysis

The gold market has pulled back a bit during the trading session on Tuesday as we are giving back some of the gains from the Monday session. I still think there is a bit of interest right here at the 5,150 level, as it was previous resistance and now should, at least in theory, offer support. After that I would anticipate that the 5,000 level will be supportive as well.

The gold market has been in an uptrend for quite some time, and we have recently bounced from a trendline and the 50-day EMA and since then have just been grinding our way back to the upside. We have not taken out the candlestick from several Fridays ago that wiped so many people out, but we are getting there.

Central Bank Demand and Market Stability

In fact, you can make an argument that gold is starting to lead silver as opposed to the other way around that we had once seen, although during the Tuesday session, silver is up while gold is down. Nonetheless, the gold market seems a much more stable place to live, and therefore, I like the idea of buying dips here because we are seeing divergence between central bank monetary policy and, of course, central banks around the world continuing to buy gold.

The US dollar strengthening just a touch has put a little bit of downward beat in this market for the day, but really, ultimately, when you look at the chart, there is nothing on here that tells you should be short of gold anytime soon. I am looking for value and then I will be taking advantage of it.

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