- The gold market has shown itself to be rather bullish again in the early hours here on Tuesday.
- That being said, there is a big thing going on Wednesday, the federal reserve interest rate decision, which obviously will have a major influence on gold and where we go from there, as the influence on gold from those meeting is well known.
Short-term pullbacks, I think, at this point in time do end up being buying opportunities in the gold market. And quite frankly, if we do drop from here, I anticipate that there are a lot of people wanting to participate. The $3,600 level is an area that I think attracts attention, and most certainly the $3,500 level would. Based on the ascending triangle that we broke out of, the targeted move is for $3,800, and there's literally nothing on this chart that tells me we can't get there.
We Are a Bit Overdone at the Moment
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That being said, we are a little overdone and it's possible that we get a little bit of a pullback. But again, I think that it ends up being thought of as value more than anything else. The Federal Reserve could spook the markets and cause a run to the dollar somehow. Perhaps worried about the global economy, but any move like that would probably be longer term holders of gold raising liquidity in order to cover other positions.
So, if gold does dip initially, it should be short lived. After all, people will eventually come back to gold for its inherent safety. With all of that being said, I do think that in the end, gold goes higher; people go looking at the gold market for safety. And again, I don't see anything keeping us from getting to $3,800.
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