The gold market shot higher during the session on Wednesday, as we continue to try to break higher and above the recent resistance. However, this is a market that looks like it will eventually take off to the upside.
Gold Markets Technical Analysis
The gold market rallied rather significantly during the early hours on Wednesday again, as it looks like we are just going to continue to pressure this area until we squeeze to the upside. Given enough time, I fully anticipate that we do, but at this point in time, I think this is a situation where you need to look at this through the prism of when it pulls back, does it offer value? And right now, it does.
Breaking above the shooting star from last week would be an extraordinarily bullish sign, and I do think that eventually it happens. That being said, it’s also worth noting that this won’t be easy, there’s obviously a lot of noise, but with central banks around the world looking to buy gold and loosen monetary policy, and of course, all of the geopolitical problems that we have currently it does make sense that eventually gold goes much higher.
I certainly don’t have any interest in shorting this market because it is far too strong. At this point in time the 50-day EMA offers support but before that, you have the $2150 level offering a bit of support from previous trading. Ultimately, this is buying on the dips, and it’s just a market that I think eventually finds its way to $2,500. This is my longer-term target at the moment, however, I suspect we could go even higher if the current attitude and concerns around the world continue to be an issue at this point.
Source: Fxempire
