- In my daily analysis of the gold market, the first thing that I notice is that we have in fact broke above the resistance barrier in the last several days.
- By doing so, the market looks as if it is ready to continue going higher, perhaps finally reaching the $2800 level that I had suggested as a potential target previously.
The $2800 level is an area that I think could be reached based upon the previous bullish flag, as it is the so-called “measured move” of that flag. By breaking to the upside the way we have, this is a market that I think will continue to attract a lot of “FOMO trading”, as traders brace for the US election, which is now essentially pricing in a Donald Trump victory.
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Furthermore, the Consumer Confidence numbers came out much hotter than anticipated, but at the same time, the JOLTS Job Openings numbers came out much lower than anticipated, showing just how mixed the US economy is at the moment.
Technical Analysis
The technical analysis of this market is fairly positive to say the least, as the market continues to see a lot of momentum to the upside. The gold market continues to see a lot of exterior issues plaguing it, as the geopolitical issues continue to see a lot of questions asked about the world and the global economy.
Furthermore, you also have to wonder whether or not there is more demand for gold due to the fact that there are plenty of central banks out there buying it. After all, India, Indonesia, and China are all known buyers, as well as Russia and several others.
With this, I think there is a permanent bid in this market, and we will continue to see people attracted to this market. Furthermore, the simple momentum is something that could drive this market higher as well. I have no interest in shorting this market anytime soon.
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