Gold Technical Analysis
The gold market is somewhat stable during the early hours here on Friday morning as we continue to look for some type of move. Really at this point in time, I think one of the biggest problems you will have is the fact that volume, of course, is dropping overall when it comes to Wall Street. And as we are in the holiday season, the next week or two might be somewhat slow. That being said, when you look at the longer term charts, you can see clearly that we’ve been in a pretty large uptrend over the last couple of years. And now we could, at least in theory, be forming some type of bullish ascending triangle, even if we aren’t, then you would be talking sideways action. But it does look like the lows continue to become higher while the highs are continuing to hover around $3,500.
That tells me that we are more likely than not to eventually force our way to the upside, and that would just be a simple continuation of what we had seen before. If the Federal Reserve is in fact going to start cutting rates like some people hope, then that would be very bullish for gold. All things being equal, this is a market that I think is just kind of waiting for some clarity coming out of the Federal Reserve, but it certainly looks like we are already leaning to the upside. So, I look at pullbacks as buying opportunities. The 50-day EMA could come into the picture for support right along with the $3,300 level.
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