Gold Technical Analysis
The gold markets have gapped higher to kick off the Thursday session and then ran much higher as we continue to see a lot of questions asked about the global economy. Despite the fact that we had the tariff announcement during the trading session on Wednesday where the US would pause tariffs for 90 days, the reality is that gold had been in a long-term uptrend to begin with, and now that the stock market rallied a bit, gold rallied as well because the forced liquidation of hedge funds who had massive losses elsewhere in the gold market seems to have ended.
If that’s of course the case, then it’s likely that the market could continue running toward the $3,200 level. But I’d like to see a little bit of a pullback because, quite frankly, if you are not already long in this market, you don’t really want to chase this type of move if you can avoid it, as there will be a pullback.
Using the bullish flag that we formed a couple of weeks ago, it does suggest that we are going to get to the $3,300 level. And I think that’s a reasonable expectation considering how the markets have behaved. It’s also worth noting that the $3,000 level offered support as well as the 50 day EMA. Ultimately, this is a market that I think will continue to outperform most others. It has been a good year, year and a half now, and I don’t think it will change anytime soon.
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