Gold Technical Analysis
Gold markets initially did try to recover a bit during the trading session on Wednesday, but we have softened up yet again. That’s not to say that anything has changed from a longer term standpoint, I still think gold is a very bullish place to be. And I do think that there are plenty of buyers out there willing to get involved in the gold market. If and when we get a pullback, I think you could see this market really start to take off to the upside eventually.
But I also recognize that you have to be aware of the possibility that gold might have a little bit of listless type of drifting at the moment. After all, we have made a pretty significant move to the upside over the last couple of weeks, and we are facing a major resistance barrier.
The $3,500 level above for me is a major barrier to overcome, and if and when we can, then gold will truly take off. Short term pullbacks at this point in time, I think continue to be buying opportunities, with the 50 day EMA offer and support right along with the $3200 level. Ultimately, this is a market that I don’t sell, I buy when it gets cheap on a pullback.
And I do think we probably have further to go to based on geopolitics, the idea of tariffs still being a problem, and of course, the US dollar has shrank a bit as well. So, with all of that combined, I still think there’s an underlying fundamental reason for gold to go to the upside.
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