- During the trading session on Tuesday, we saw the gold market rally a bit, but we have also seen the gold market give back some of the gains.
- Because of this, I think the market is likely to continue to see a lot of noisy behavior, but I also believe that there are plenty of reasons for gold to continue going higher in this present environment.
- After all, there are a lot of things going on right now that has people looking for some type of safety when it comes to their portfolio.
Technical Analysis
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The technical analysis for this market is obviously very bullish, and what I find very interesting is this point in time is that the $3000 level continues to offer support. That is worth noting, because the $3000 level is a large, round, psychologically significant figure, and an area that would more likely attract the attention of a lot of options traders. If we were to break down below there, then the market could go looking to the top of the bullish flag that we had recently broken out of. After that, then we have potential support at the $2900 level.
The $2900 level features the 50 Day EMA, and I think that’s basically where the trend ends at the moment. That being said, I also think it’s very unlikely that we will get to that area. While we did give back a certain amount of gains for the session, the fact that we remain fairly resilient is something that traders need to be paying attention to. Ultimately, this is a market that I think traders are still looking for the value to reenter the market to take advantage of as the trend is so strong at the moment. I have no interest in trying to short this market as it is so strong. I believe that it is only a matter of time before we reach much higher levels.
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