Gold markets went back and forth during the course of the trading session on Wednesday in the early hours. But really at this point in time, it looks like we are doing everything that we can to break out, but perhaps we still have some work to do short-term pullbacks, I do believe, end up being buying opportunities in the gold market as it is so bullish. And of course, we had seen so much in the way of upward pressure during the previous session. On Tuesday, the $2,900 level is a large, round psychologically significant figure that has been support more than one time.
But even if we were to break down below there, it’s likely that we could go down to the $2,800 level where I think it’s even more heavily supported as the 50-day EMA is heading there. I think it’s probably only a matter of time before gold reaches the $3,000 level, which of course has been my target going back to like October of last year, but unfortunately, we had a long period of consolidation, and we are just now getting free of that when you look at the previous consolidation area, it does suggest a measured move of $3,000 anyway, so it all ties together quite nicely.
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I like the idea of buying short term dips, and I don’t have any interest whatsoever in trying to short the gold market as it has been so heavily positive for so long. And now it looks like it’s trying to really drive that point home.
Source: Christopher Lewis Fxempire
