- During the trading session on Thursday, we have seen the gold market fall again, but just like we had seen on Wednesday, there have been plenty of buyers near the $2900 level.
- Because of this, the market has turned around to show signs of life, as the market is likely to continue to see plenty of momentum to the upside over the longer term.
- Eventually, I suspect that we could break out above the top of the potential bullish flag, and that of course would attract a lot of attention.
All things being equal, the measured move of the bullish flag suggest that we could go looking to the $3300 level, and therefore I think that longer-term traders are in fact looking to hang on to gold, part of what we have seen over the last couple of days. If we were to break down below the bottom of the candlestick for both Wednesday and Thursday, then we could see the market drop down to the $2850 level, which was a recent support level after a pullback. As long as we can stay above there and of course the 50 Day EMA, then I think that we have buyers looking to go into this market anytime they can.
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Plenty of Reasons for Gold to Continue
All of this being said, there are plenty of reasons to believe that the gold market should continue to go higher, mainly due to the idea that the geopolitical situation around the world remains in flux, and we have a lot of talk about tariffs. Traders are waiting to see what the next tweet is coming from Donald Trump.
With that being said, and the idea that the US dollar continues to look a bit soft, it does make a certain amount of sense that gold would continue to go higher. Furthermore, we are also in a strong uptrend overall, as we are forming a bit of a bullish flag, and we have been bullish for what seemed like a lifetime. With this, I remain long of gold.
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