The gold market continues to show a lot of upward momentum and in the early hours on Thursday, we’ve seen another all-time high touched. That being said, we are struggling a little bit, so I think short-term pullbacks probably continue to be the most likely of outcomes, but those short-term pullbacks should end up being buying opportunities before it is all said and done.
The $2,900 level below is a large, round, psychologically significant figure that a lot of people will be paying close attention to, and an area that has proven itself to be important in the past anyway, showing “market memory.”
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So, with that being said, I like the idea of buying short-term dips closer to that area if we get them. But I also recognize that we could just simply take off to the upside and go looking toward my target of $3,000. When you look at the previous consolidation, it was $200 worth of consolidation. And if we break above the 2,800 level, like we did, the technical analysis suggests that the measured move is $3,000.
I think between that, concerns about tariff wars and concerns about global trade, I think all has gold looking interesting anyway. But the technical measured move will be something that technically driven traders will be aiming for anyways. So, there is no real argument to be shorting gold anytime soon. I think this is a “buy on the dip” kind of market as it has been for at least a year and a half.
Source: FXempire
