Gold Markets Technical Analysis
The gold market initially pulled back just a bit during the early hours on Tuesday, but seemingly have found buyers near the 50-day EMA yet again. This is a repeat of the Monday session. So, it’ll be interesting to see if we can in fact continue the upward momentum. If we do, the market could go looking to the $2,365 level and if we can break above there, then it opens up the possibility of a move to the 2,400 level.
On the other hand, underneath the 2,300 level and offers a significant amount of support as it has been rather important multiple times recently. With all of that being said, I think we are in the midst of a consolidation area, which makes sense after shooting straight up in the air previously. If you look at thegold marketand squint a bit, it almost looks like Bitcoin.
So, I think gold ultimately will be driven by a lot of the same things that have been driving Bitcoin in the sense that everybody’s paying attention to the Federal Reserve. However, thegold marketalso has a few other factors, including the fact that central banks around the world continue to be major buyers. Further than that, we have plenty of war to go around for everybody, so that helps as well.
And of course, we have plenty of profligate borrowing by various governments around the world, especially you in America. So, with all of that put together adds up to a fairly robustgold market I have no interest in trying to short this market, and I do believe that it goes much higher over the longer term.
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This article was originally posted on FX Empire
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