Gold markets have rallied quite nicely over the last couple of weeks, now looks like we are trying to break out above the $1800 level in the spot metal market. At this point, we can continue to press to the upside, then gold has a shot at making it all the way to the $1880 level in the short term, and perhaps even assize the $2000 level over the longer term.
You should keep in mind that the jobs on Friday will probably have a bit of an influence on where we go next. You should also pay attention to the 10-year yield, because if it can continue to fall, then it’s likely that we will see gold take advantage of that. It’s very unlikely that we have an easy path one way or the other since we have seen so much momentum to the upside, it’s going to take a little bit of help from the jobs market on Friday to juice this thing out. It’s obvious that there are a lot of buyers in this general vicinity, but there are also a lot of people that will be looking at this through the prism of “market memory” as well. Because of this, I think we have a situation where by the end of the day on Friday we should have a much better look at what is going to be the longer-term move.
Pullbacks to Attract Buyers
- As things stand right now, I suspect that short-term pullbacks will continue to attract buyers, as we have seen so much momentum and a lot of people will be looking to take advantage of a major shift in attitudes.
- After all, it was not that long ago that it seems like the US dollar was going to destroy everything.
- We now have a situation where it’s obvious that the buyers are starting to flee, and therefore it’s probably only a matter of time before we go much higher.
Alternatively, if we do break down below the 200-Day EMA again, that could send this market reeling but I think we need some type of catalyst to get that going. In the short term, I just don’t see it so I am bullish, but I also recognize that we are going to have a lot of noise early on Friday.
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