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Gold Markets Weekly Technical Analysis
The gold markets have exploded to the upside yet again during the trading week as we are now well above the $3,300 level in the futures market. That being said, it is worth noting that the market was closed on Friday, so this is actually a four day candlestick. We did give back a bit on Thursday and I think part of that might have been people collecting their profit and of course, hanging around trying to determine whether or not there is some type of risk over the weekend with headlines, perhaps even being good headlines for once and gold could pull back in that environment.
So, I think maybe we pull back, we’ll have to wait and see what the news flow is, but the $3,200 level, I believe, will be a significant support level. Anything below there could open up a move down to the $3,000 level, which is a large round psychologically significant figure and an area where I think a lot of value hunters would return. We are overbought, but quite frankly, there are so many different things lifting the price of gold at the moment that it’s difficult to imagine a scenario where you want to be short of this market, at least as things play out right now. After all, we have a global slowdown. We also have the tariff war and of course the US dollar shrinking. All of those things, plus the fact that central banks around the world continue to buy gold, all have me looking at each and every dip as a potential buying opportunity.
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