Gold Technical Analysis
The gold market has rallied a bit during the early hours on Friday as we continue to see a lot of questions about the overall global financial system and of course, the global economy as Donald Trump over the late hours on Thursday had talked about the tariffs being extended on Canada, as well as other countries. So, with that being said, it is a market that is attracting a certain inflow due to finding safety in a very uncertain world at the moment. It is a situation that should continue to favor upward momentum.
Regardless of that, it’s a market that has been in a major uptrend for some time. So, I think you’ve got a situation where it’s just continuing its run higher. We had rallied pretty straightforwardly and straight up in the air for a couple of years. Now we’ve spent a couple of months going sideways and really at this point, I think you have to look at it as a market that is trying to get back to the top of the range that we have been in, meaning that it’s trying to get to the $3,500 level.
Breaking above $3,500 would be a major victory. And I think at that point, the market is ready to go looking towards the $3,800 level. The 50-day EMA is a support level, but if we break down below there, the market will test at that $3,200 level. Either way, I have no interest whatsoever in shorting this market. Dips continue to be buying opportunities.
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