Gold Markets Weekly Technical Analysis
The gold market plunged during the week but has turned around to show signs of life, and now it looks like we are trying to turn positive as we are back above the $5,000 level.
The $5,000 level of the course is a large, psychologically significant figure and an area that a lot of people will be watching closely. The $4,800 level I think continues to be support and of course we are still on an uptrend regardless of what has happened over the last couple of weeks.
Momentum Begets More Momentum
This is one of the most important things to pay attention to because, quite frankly, momentum begets more momentum. Central banks around the world continue to see demand for gold being the reasonable course forward and of course we have plenty of geopolitical issues out there that will continue to cause quite a bit of noise.
Ultimately, I do think that we go higher over the longer term and I look at dips as potential buying opportunities. I am particularly interested in the $4,800 level as well as the $4,700 level.
Longer term, I do think we touch the highs again, but I do not think that happens overnight. I think that is something that takes weeks upon weeks, maybe even months. I have got no interest in shorting. If we were to break down below the $4,400 level, though, we would have seen a complete turnaround, and that could be very ugly. I do not see that happening, though, and as a result, I like dips for value.
