- During my daily analysis of the gold market, the first thing that stands out is just how bullish this market is. It has continued to go higher for some time, so it makes a certain amount of sense that short-term pullbacks will continue to get bought into. Ultimately, gold has a lot of different things working for it at the moment, not the least of which is the tariff situation in the United States, regarding Canada and Mexico because, quite frankly, it’s very unlikely that the United States will stop the tariffs at just those two countries.
Furthermore, gold traders will also be paying close attention to global debt, which, of course, is still a major problem for huge portions of the global economy. So long as that’s going to be the case, it makes sense that there will be a lot of demand for gold to protect wealth. All things being equal, this is a market that is bullish and has recently been consolidating. With this being the case, the market is likely to continue to see a bit of “FOMO” entering the situation.
Technical Analysis
The technical analysis for this pair is obviously very bullish, so it’ll be interesting to see whether we see an extension. After all, the market had consolidated for a couple of months, and the so-called “measured move” could be thought of as opening up the possibility of reaching the $2900 level. This doesn’t mean that we get there easily, just that I think it could find the momentum to eventually grind its way to that level. The “FOMO trading” could come into play, but I think we also have to keep in mind that the market will also have to see a lot of barriers broken all the way up to the $2800 level. Once we get above there, this market really starts to take off. On the other hand, if we break down below the $2700 level, the 50 Day EMA is support near the $2650 region.
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