- Gold has shot higher during the trading session on Thursday, as the Swiss National Bank has cut rates.
- This was in contrast of the Bank of England which stood still but is likely to join sooner or later.
- Ultimately central banks around the world cutting rates will continue to help gold, and that should drive gold at least in the short term to the upside and perhaps to the top of the overall consolidation range that we have been in for some time.
The $2,400 level is an area that previously has been resistance. So, if we can break above there, then it's possible that we could go looking to the $2,450 level.
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Short-term pullbacks should continue to be a buying opportunity, especially with the 50-day EMA underneath and the $2,300 level underneath there offering support as well. All things being equal, as long as we can stay above the $2,280 level then I think you've got a situation where you have to be a buyer of all dips. However, if we were to break down below there then
We could go looking towards the $2,150 level where I think at this point in time, you probably have a lot of buying pressure and perhaps value, especially with the 200 day EMA. I think gold goes much higher at this point, but we are working on trying to get past some of the froth. Now as we have gone back and forth, I think it is likely to be noisy, but overall positive.
Furthermore, you have to keep in mind that the world continues to see a lot of geopolitical problems, and of course central banks around the world looking very loose, while they buy gold, it does continue to put upward pressure on this market, and I think gold continues to be one of the better performing assets over the next year or so. I remained very positive.
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