Gold Markets Weekly Technical Analysis
The gold market initially fell a bit during the course of the week, only to turn around and show signs of life. The 2700 level of course is a large round psychologically significant figure. But more importantly, there’s an area from there to about $2,720 that there’s a zone of resistance. We are a market that is consolidating after a big shot higher and therefore, I think you’ve got a situation where we continue to see buyers coming into the picture to pick up cheap ounces of gold.
After all, the market is likely to continue to be driven by interest rates, by geopolitical concerns, and of course, monetary policy easing in multiple central banks. In fact, the gold market in other currencies looks a lot more bullish. So, keep that in mind, in case you do want to buy gold, you might want to buy it in Australian dollars, for example. So, at this point, I do believe gold continues to find plenty of buyers.
I do believe that it will eventually break out above the recent high and I also believe that it gets to the $3,000 level, probably quicker than most people believe. Now, having said all of that, I also think that we still have some work to do before we truly break out. So, I’ll be looking at dips as potential buying opportunities in what is a very obviously strong market.
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