Gold Markets Technical Analysis
The gold market initially did rally a bit during the trading session on Friday but has since turned around to show signs of weakness, only to turn around and bounce again. I think we are testing a fairly significant support area on short-term charts, but I’m even more interested in the $2,900 level below, which I think will end up being a massive support area given enough time. Ultimately, this is a market that I do like, and I do think goes higher given enough time. The trend itself is still very much intact, and that should be the main take away from this analysis. I have no scenario in which I’m willing to short the gold market anytime soon.
But right now, I also recognize that we have a lot of noise going on that will continue to be a bit of a problem. Over the longer term though, I still think that this market looks likely to reach the crucial $3,000 barrier and possibly even further than that if given enough time. Longer term, I do think that the $3,000 level will make a little bit of difference as far as a psychological barrier but I do expect that we break through there as well.
Global tensions, tariff wars, pretty much everything out there gives you a reason to own gold. Not to mention the fact that since the end of 2022 we’ve been extraordinarily bullish, so the overall longer-term trend still ties in quite nicely with the idea of acceleration to the upside before it is all said and done.
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