Gold Markets Weekly Technical Analysis
The gold market shot higher during the trading week as we broke above the $2,700 level. At this point in time, short-term pullbacks continue to offer buying opportunities. And I think that will be the way it goes going forward. It will be simply a buy on the dip type of situation. The $2,800 level is my next target, and I think we will probably get there quicker than most people anticipate. Keep in mind that there are a lot of different things that come into the picture when it comes to why gold should go higher. Not the least of which, of course, is geopolitics.
The geopolitical issues obviously offer a lot of concerns. And with that being the case, I think you have to understand that traders are out there looking for a little bit of safety. Central banks around the world are also buying gold, and therefore it has an automatic bid in the market, if you will. At this point in time, anytime the market pulls back, I think there will be plenty of buyers willing to get involved, especially as interest rates are being cut around the world because that also makes gold a little bit more attractive.
I have no interest in shorting this market and I do think that we have much, much further to go. And I have a target of $3,000. And for me, at this point in time, the only question is, can we get the $3,000 by the end of the year? I suspect yes, we can. But even if we don’t, I would anticipate that early in 2025, we will see that crucial level tested.
For a look at all of today’s economic events, check out our economic calendar.
