The gold market initially fell during the trading session on Wednesday, but really at this point in time, it does look like the $2,480 level is trying to do everything it can to hold up the market. And if it does in fact hold here, I think you’ve got a real shot at a potential long opportunity. I don’t necessarily think that the market is going to shoot straight up in the air, but I do think that we are basically killing a little bit of time here in order to sort out whether or not we have enough momentum going forward.
I think there are plenty of reasons for gold to rally, not the least of which will be interest rates dropping and perhaps more importantly, geopolitical concerns. But the US dollar has been strengthening a little bit over the last 24 hours and it’s put a little bit of a drag into the gold market.
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Now they both can go higher at the same time, and I would fully anticipate that will be the case given enough time if we have some time of economic trouble ahead and I think we do. But we also have to keep in mind that gold is being bought by central banks around the world so that puts a little bit of a floor in it anyway. And then finally and probably the most obvious and important part of my analysis is that we are in an uptrend there’s no reason to think that’s going to change suddenly.
Source: FXempire
