Gold Technical Analysis
The gold market has rallied significantly during the early hours on Monday, as we continue to see a lot of upward pressure in general. The market pulling back the way it has offered a little bit of a buying opportunity for some out there. And as a result, it looks like we are now going to threaten the $3,350 region, an area that was significantly noisy previously.
So, with that being said, I don’t know how much more upward momentum we have, but certainly I would not be a seller of this market in the current environment. The 3,200 level of course is an area that I think a lot of people will look at it as potential support. All things being equal, I am a bit cautious right now about getting too aggressive, but I certainly see this as a bullish market. I certainly won’t be shorting it.
Even if we broke down below the $3,200 level, the 50-day EMA underneath should offer support. And I think a lot of traders would be looking at that as a potential buying opportunity as well. Keep in mind that there are a lot of geopolitical concerns out there right now, and a lot of traders will be looking at this as a potential buy-on-the-dip type of scenario. This has been the situation for some time in this market, and I see it as continuing at the moment. I have no intention of trying to “catch the top” here.
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