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Gold Markets Technical Analysis
The gold market has rallied a bit during the early hours here on Wednesday, as it looks like we are, in fact, going to continue the overall uptrend sooner or later. With this being the case and the fact that we recently formed such a bullish flag, I think you’ve got a situation where traders will be looking to get involved in what has been a very strong market for some time. Ultimately, I think you have a market that, based on the measured move of the bullish flag, should go looking at the $3,300 level. And quite frankly, there are plenty of concerns out there that could, in fact, continue to drive people into gold to protect their wealth and portfolios.
Because of this, I like the idea of buying on dips and it looks to me like we will continue to see the 3000 level offer a bit of support here. If we were to break down below the $3,000 level, then we could get a little bit deeper of a pullback, but right now, it seems more likely than not that we just buy the dip and then eventually after catching our breath a little bit from this breakout, continue to go higher. I have no interest in shorting gold and with the US dollar losing a little bit of strength against multiple currencies, I think you’ve got a real shot here of gold rallying for that reason alone, let alone all of the other geopolitical uncertainty.
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