- Gold markets have done very little during the trading session on Wednesday, which is not a huge surprise considering it was Juneteenth in the United States.
- This is a new holiday but one that closes down the futures markets and Wall Street for a while.
- Because of this, the market will continue to see a lot of momentum in the longer term, but at this point the hesitation makes a lot of sense.
So, with that being the case, I think you've got a situation where you can't read too much into the winter candlestick, but you can look at the totality of the market and recognize that there is plenty of support underneath, especially near the $2,300 level. The $2,300 level is an area that's a large, round, psychological, significant figure. The support extends down to the $2,280 level.
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The Support Just Below Matters
So, it's more or less a zone in the market at this point in time. I like the idea of buying dips, and I think gold has plenty of reasons to rally over the longer term. After all, the geopolitical world, of course, is a complete mess. Central banks around the world continue to buy gold. The profligate borrowing by governments, especially Western government, does tend to cause some issues as well.
I think we've got a scenario where any time we pull back, value hunters are going to come back into the market. The $2,400 level above could be a bit of a ceiling. And perhaps even a target. If we were to break down below the $2,280 level, then I think we reset, perhaps trying to get down to the 200 day EMA, which is near the crucial $2,150 level that had shown itself to be important previously. If we were to drop to that level, I would not only be a buyer, but a massive one as it would offer so much in the way of value. I still have no interest in selling gold anytime soon.
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