Gold Technical Analysis
The gold market has broken higher in the early hours here on Monday, which is not a huge surprise considering that there was military action by the United States in Venezuela over the weekend, and that probably has people a little bit nervous. But at the end of the day, it looks like it’s fairly contained, and if that’s going to be the case, I think short-term pullbacks are possible.
I also think those short-term pullbacks end up being buying opportunities because, quite frankly, as I’m sure you’re aware, the gold market’s been in a strong uptrend for a while anyway. So, with that being the case, it makes no sense that we suddenly turn around and start selling off. With that situation being the reality of the market, I like the idea of taking advantage of cheap gold anytime I can, and I most certainly will do so.
$5,000 Gold
The 50-day EMA is now walking along the uptrend line from the ascending triangle we just broke out of, which, by the way, measures for a potential move to $4,900. I think sometime in 2026 we will see $5,000 gold. It sounds like a lot, but at the end of the day, it really isn’t. It’s only about a 10% or 11% jump from where we are now, and that is something that has become more likely over the last several months. As a matter of fact, had I told you a year and a half ago we were talking about $5,000 gold in 18 months, you wouldn’t have believed me, but now the whole idea has become a lot less shocking.
Every time this market pulls back, I look at it as a potential buying opportunity and just buy the bounce. So we’ll have to see if we get that on the short-term charts to take advantage of. I think we probably are in the midst of it right now as I look at this chart. So, with a little bit of patience, you probably will have a reasonable entry.
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