Gold Markets Technical Analysis
The gold market has pulled back just a bit during the early hours on Tuesday, but it does look like there is a significant amount of support just below the $2,500 level. And therefore, I think it’s probably a time now that value hunters will come in and try to pick up the gold market. There are plenty of reasons to think that the gold market should continue to be positive due to the fact that we have massive amounts of geopolitical concerns. And of course, we have interest rates going lower around the world and that makes gold a little bit more attractive. We also have India, China, Russia, and a few other fairly sizable central banks out there buying gold.
So, I do think that it has a little bit of support underneath. If we do pull back from here and if we were to break down below the short-term support level. The market has plenty of support down at the 50-day EMA as well. In general, this is a situation where I do think it’s only a matter of time before we go higher and break above the $2,525 opening up a much bigger move to the upside. I have no interest whatsoever in shorting gold anytime soon, as it looks so strong overall. With this, it is likely that the market will find a reason sooner or later to get going to the upside yet again.
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