Gold Markets Technical Analysis
Gold pulled back just a bit in the early hours on Thursday as we continue to see a lot of noisy trading, but quite frankly, this is a market that I think is just taking a little bit of profit. We have shot straight up in the air for a while and therefore recovering on a pullback makes quite a bit of sense. I think we could pull back as far as $2,700 and still find plenty of buyers out there willing to get involved.
I have no interest whatsoever in shorting the gold market and I think it will continue to be very strong. Interest rates, of course, have been dropping a little bit worldwide, and that helps gold, but also you have a lot of geopolitical concerns, and it seems like a lot of people are using gold to protect their financial wealth from the effects of tariffs coming out of the United States, and they will be coming.
So, when I look at the chart and I see this huge, massive, mutated W pattern, it suggests to me that the buyers, of course, are getting involved again, and then it’s likely that every short-term pullback will eventually attract enough momentum to turn things back around. I don’t want to short gold and wouldn’t even consider it until we got well below the $2,600 level, something that doesn’t look very likely in this current environment. In fact, I think we will pull back and then try to make a serious run to break above the crucial $2,800 high that we have seen.
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