The gold market has found itself to be supported during the early hours on Thursday and the $2600 level has offered a significant amount of support. All things being equal, this is a market that I think given enough time probably takes off to the upside, but it could also be a little bit noisy to say the least. So, with that being the case, I think ultimately you look at this through the prism of each dip offering value that you can take advantage of.
The $2,600 level of course being broken to the downside would be fairly negative, but I also recognize that quite frankly, we’ve got a situation where the fundamental reasons all line up. We have interest rates being cut by central banks around the world. We have the Federal Reserve of course leading the charge, and it’s probably worth noting at this point that traders are also paying attention to geopolitics as well as the fact that several central banks around the world are buying gold bullion as well.
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So really at this point, I just don’t see a reason to short this market. And I think given enough time, we probably take off quite a bit with this, I do expect a lot of volatility, I expect a lot of noise, but I also expect a longer term uptrend to continue, and it would not surprise me at all to see this market eventually make its way up to the $3,000 level. I have no interest whatsoever in shorting gold.
Source: FXempire
