- I have noticed that the $2,400 level continues to see a lot of interest paid attention to it.
- So, with this being the case, it looks like the market will continue to be a massive buyer in general on Paul Banks.
- And if we can break above the $2,450 level, then this is a market that could really take off to the upside, perhaps even reaching $2,500 before it's all said and done.
This week has been very noisy, as traders are banking on the idea that the Federal Reserve might cut rates, and if they do, that should only continue to drive gold higher as low interest rates are like rocket fuel for gold. Furthermore, we have a lot of geopolitical issues out there that could continue to cause gold to go higher.
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A Safety Asset
After all, it is a bit of a safety asset. Furthermore, we have been in a consolidation range for several months now, and it looks like we are pressuring this market to the upside, and we will eventually break above the ceiling. If we break above that, then the $2,500 level would be the first logical target. And if we can break above there, then we could go much higher.
Short term pullbacks I think continued on offer buying opportunities. And even if we were to break down below the $2,400 level significantly, then you could be looking at the market testing the 50 day EMA, which is an even better place to buy as far as I'm concerned. This is a one way trade. I have no interest in shorting the gold market and I am a buyer. Any time I get an opportunity to pick up cheap ounces of gold. This is the best way forward with a lot of assets at the moment, and the gold market will not be any different.
The gold market can be noisy, but it is really good at holding onto trends. This market is going to occasionally pull back, and this is something that you need to be looking for. Ultimately, this has been the way forward for some time now.
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