- During my daily analysis of the gold market, I can see clearly that we are breaking out to the upside, and it looks like gold is going to continue to power higher.
- After all, we are above the $2700 level, and I think it is probably only a matter of time before we hit the $2800 level above.
Technical Analysis
Looking at the technical analysis for the gold market, It’s worth noting that the technical analysis in this pair is extraordinarily bullish and there is literally nothing on this chart that has me thinking that I should be selling. It’s also worth noting that we had recently broken out of a bullish flag, and as a result, you have to look at the potential “measured move” head, which would suggest that we could go as high as $2800, which obviously is a large, round, psychologically significant figure.
Top Regulated Brokers
Furthermore, we also have the 50 Day EMA near the $2580 level and is rising. This obviously would offer a certain amount of support, especially as we get closer to the $2600 level, which was the scene of the most recent pullback and bounce. There should be a lot of “market memory” in that area, so I think that is your “floor in the market” at the moment.
Fundamental Reasoning
There are plenty of fundamental reason for gold to continue rising, due to the fact that the interest rates around the world are being cut, which in and of itself can drive gold higher as suddenly, becomes much more feasible to store physical gold instead of simply holding bonds that pay a bit of interest. Because of this, we have seen the gold market take off and the fact that more fiat currency is being created suggest that it will take more of that fiat currency to buy an ounce of gold.
Short-term pullbacks at this point in time will attract a lot of attention, especially considering that central banks around the world are buying gold hand over fist, especially in places like China, India, Indonesia, and Russia. As long as that remains the case, there is a bit of a “bid in the market” going forward, I think you will have to look at this market as such.
Ready to trade our Forex daily analysis and predictions? We’ve made a list of the best Gold trading platforms worth trading with.