Gold Markets Technical Analysis
Gold pulled back just a bit during the trading session on Tuesday as we continue to consolidate just above the $2,300 level. This is a market that recently has been very strong, so this pullback does make a certain amount of sense.
Keep an eye on interest rates in the United States because that obviously will have a major influence on where we go next. And of course, we have to look at this through the prism of a market that has a lot of different factors pushing it. Not only are interest rates that you have to pay attention to, but you also have to pay attention to geopolitical concerns. After all, the situation in the Middle East hasn’t really gotten any better.
And then of course, we have war in Ukraine, central banks around the world, especially those in the global south, are grabbing as much gold as possible. And therefore, I think you still have a bit of a floor underneath this market regardless. This dip that we are currently observing in this market should end up being a nice buying opportunity. The 50-day EMA underneath is going to be supported as well.
And even if we broke through there, either has to be a massive amount of support near the $2,200 level. I do think that given enough time, we could see a move towards the $2,400 level and then the $2,500 level. Ultimately, I have no interest in selling and I do think gold is going to continue to strengthen over the longer term.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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