- Gold markets have rallied a bit during the trading session on Tuesday, as we have broken above the $1930 level.
- After all, when you look at the US economic numbers during the day, it suggests that perhaps traders are thinking that the Federal Reserve will have to loosen monetary policy.
The JOLTS Jobs Openings number came out at 1 million less than anticipated, and then of course the Consumer Confidence numbers came out 10 points underwear they had anticipated seeing it. This suggests that perhaps the US consumer will stop spending so much, and that could in theory bring down the inflationary pressure in the United States. That being said, we are still light years away from the Federal Reserve doing anything, so to be interesting to see how this plays out.
You think that gold is bullish for multitudes of reasons, so it’s not just about inflation in America. Quite frankly, there’s a lot of uncertainty out there, and that of course will make it interesting for those who are concerned about protecting wealth. We had recently bounced off of the 50-Day EMA, and the 38.2% Fibonacci level. If we can break higher from here, then the $2000 level is probably the target.
The Market is in a Long-term Uptrend
If we break down below the lows of the last couple of days, then it opens up a move down to the $1800 level, which is near the 61.8% Fibonacci level, which also features the 200-Day EMA. Ultimately, this is a market that I think continues to see a lot of noisy behavior, but I do think that it’s almost impossible to short gold. The gold market is in a long-term uptrend, and even though the last couple of months have been less than stellar, the reality is that it has just been a little bit of a pullback from the highs.
Pay attention to the US dollar, although that correlation with gold has broken up just a bit. The market will more likely than not continue to see a lot of questions, and therefore I think this is a situation where if we can break above the $2000 level, it’s probably going to send this market to the recent highs, and quite frankly I would not be surprised at all to see this market go beyond that.
Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.