- The gold market was all over the place during the trading session on Thursday as we initially did try to rally but then gave back the gains to plunge pretty significantly.
- We have turned around to rally again.
- And I do think that we have a situation where a lot of traders were probably selling gold to cover losses elsewhere after the tariff announcement.
- This happens quite a bit when markets get rocked by massive volatility like we have seen on Thursday. These are not normal markets, so be prepared for that.
But what was interesting was both the US dollar and gold got crushed, but gold has turned back around with that weak US dollar. And that makes sense. Ultimately, gold is going to continue to be a market that a lot of people will be paying attention to. And we aren't too awfully far from the all-time high. And I think given enough time, we will break above there. Remember, we formed a major bullish flag previously and it looks a lot like a measured move to the $3,300 level given enough time.
There is Still a Floor from What I see
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All things being equal. I think that the $3,000 level underneath is going to be an area that you have to pay close attention to as it is a large round, psychologically significant figure and an area that a lot of people will be possibly trying to pick up any value. If it does occur, the 50 day EMA is starting to move in that direction. But ultimately, I think we have a scenario where the gold market is bullish. It's been bullish and it's going to remain bullish, especially now that we may have some type of serious problem with international trade going forward. With that, I remain a buyer on dips.
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