- The gold market has drifted a little bit lower early during the trading session, but it looks as if buyers continue to be attracted to the yellow metal, for a whole host of reasons.
- Gold markets initially pulled back during the trading session on Monday, but then turned around to show a little bit of support.
- The 50 day EMA sits just underneath offer and support, all things being equal, this is a market that I think will continue to find plenty of buyers. That’s been the case for some time now.
The $2,000 level underneath is a major large round number. All things being equal, this is a market that I think you will continue to see a lot of volatility due to the fact that the interest rate markets will of course be all over the place as well as we have had so much in the way of confusion when it comes to central banks. That being said, I think central banks around the world are going to start cutting, and therefore I am bullish on gold.
Straight Up? Probably Not.
That doesn't necessarily mean that gold takes off straight up in the air, but what I think it does do is continue to put more of a buy on dip mentality in the gold market. Monday was just a microcosm of this as we continue to see every time the market drops, somebody's willing to step in and pick things up. $2,000 should be your floor at the moment in this market, but we will have to wait to see whether or not it holds.
In fact, I think there's probably a zone of support extending from $2,000 down to the $1,980 level. On the upside, I believe that the $2,075 level above is your short-term ceiling. And if we can break that on a daily close, that would be a very bullish sign perhaps allowing more of a buy-and-hold mentality when it comes to gold. Either way though I think you've got a pretty choppy market with more of an upward tilt than anything else so that's how I've been trading this market. Not getting too big but definitely looking in one direction and that is for the market to go higher.
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