The $2,600 level has offered a bit of support as the large round psychologically significant figure has now proven itself to at least be interesting. The consumer price index numbers in the United States came out as expected early on Wednesday, so therefore I think you have a little bit of a relief here. Whether or not we can continue to go to the upside remains to be seen, but really at this point in time, I think you have to look at this through the prism of a market that is offering enough value that people are willing to step in and take advantage of it.
Even if we were to break down below there, then we could go down to the $2,500, where I think at that level, we would see a lot of psychological importance as well. But with this being the case, it’s interesting that we would bounce from here because we have dropped so hard from the $2,800 level. And I think given enough time, we will probably try to get back there. Keep in mind that central banks around the world are buying gold.
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And of course, central banks around the world are also cutting interest rates. So, with all of that being said, I think it lines up quite nicely for gold to go higher. The geopolitics piece might be cooling off a little bit because it does seem like the United States may be less interventionalist. And that could bring a lot of these wars to the negotiation table. It’s early, but that’s the hope with the new Trump administration. Gold’s been in an upturn for quite some time. That would be reason enough to be looking for buying opportunities. So, we’ll have to see if we can pick up a little bit of momentum here.
Source: Fxempire
