Gold Technical Analysis
The gold market initially fell during trading on Thursday but has turned around quite nicely to show signs of life again. By doing so, this is a market that I think is trying to find its floor. We basically swept below the $3200 level, wiped out all that liquidity and now people are looking to see whether or not the overall uptrend can continue. With that being said, I think you have a situation where traders are going to look at this as a longer term uptrend and potential value in a trend that has been obviously very strong.
So, with that, if we can get a daily close above the $3,200 level, I suspect you may see more momentum come back into this market. You could even see the market try to get to the $3,500 level before it’s all said and done, which was the most recent swing high and of course is a large round, psychologically significant figure, so do pay attention to that. On the other hand, if we were to break down below the $3,100 level, then I think it opens up a move down to the $3,000 level, which has shown itself to be important more than once, and of course is an area that is a large, round, psychologically significant figure also.
Because of this, I believe this is a market that is a buy-only market still, and I’m just looking for either momentum to the upside or some type of value closer to $3,000 below, as it has been important to the market more than once.
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