Gold Technical Analysis
Gold markets have shot straight up in the air again during the trading session here on Tuesday as we find ourselves up well over 1 % before Wall Street even steps onto the stage. With that being the case, we have reached the $3,800 level, which was roughly the measured move from the ascending triangle breakout. So, we have hit that target. Short-term pullbacks at this point could end up being nice buying opportunities. And I think the $3,700 level is an area that a lot of people will be looking at for support.
Really at this point, now we have to start talking about the possibility of $4,000. I don’t really see any reason why we can’t get there. Certainly not a lack of momentum. That won’t be the issue. So as long as central banks around the world continue to hoard gold and we are seeing interest rates get cut in places like the United States, that probably helps gold go higher anyway. I don’t have any interest in shorting gold and quite frankly, I wouldn’t even be concerned about the trend until we break below the $3,400 level.
Ultimately, this is a market that anytime it pulls back, people will be looking to get involved and pick up cheap gold along the way. I just think we have a lot further to go based on what I’m seeing as gold continues to just rip to the upside in this environment as gold has been so strong.
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