Gold Technical Analysis
The gold market is relatively quiet during the Tuesday session, despite the fact that retail sales in the United States came out weaker than anticipated. This is probably for a plethora of reasons, not the least of which will be the fact that the FOMC meeting and announcement in America is due on Wednesday. We also have a lot of questions about geopolitical concerns overseas, specifically Israel and Iran, which obviously have a major influence on gold as well. This is a market that is primed to see volatility sooner or later.
The $3,500 above is an area that I think a lot of people will be testing for resistance. And if we can break above there, the market is likely to continue going much higher. Short-term pullbacks ultimately should be buying opportunities, with the $3,300 level underneath offering a bit of a floor. The 50-day EMA is sitting right there as well. And I think ultimately, this is a market where you’re looking to pick up dips and find value.
The market has been noisy for several weeks now. And it just seems like we’re trying to work off some of that excess froth from the move higher. The market will continue to look at $3,200 as a bit of a floor, assuming that we even get there. I think it’s more likely we will break to the upside just simply following the same path that we have followed for the last couple of years.
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