Gold has been noisy on Wednesday, as we continue to see a lot of questions asked about the overall health of the global economy and geopolitical scene, especially involving Iran and the United States.
Gold has been a bit noisy during the trading session here on Wednesday, but it still looks very bullish. I think at this point in time, geopolitics alone could very well end up sending gold higher, as it looks like the United States may attack Iran again. We also have central banks out there hoarding gold, and, of course, the US dollar is shrinking slightly.
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Nonetheless, the technical analysis remains very bullish. We had broken out of an ascending triangle, and that triangle measures $4,900. There’s nothing on this chart that suggests we can’t get there, and I fully anticipate we will in the next month or 2.
Technical Breakout and Price Projections
Pullbacks, I think, offer plenty of support and value, so I’d be interested in what happens at the $4,400 level with the 50-day EMA underneath there, offering support as well. Overall, gold should continue to see plenty of buyers. I think the momentum alone just keeps this thing alight, and we continue to eventually test the $5,000 level.
A breakdown below the 50-day EMA opens up the possibility of $4,200 and then $4,000 being targeted, but I just don’t see that happening very easily. With this, I remain bullish, and I think dips continue to bring in more people trying to chase this trade.
Keep in mind silver is absolutely mooning right now, but gold is the more sensible play because of the lack of massive volatility. If you are worried about what’s going on in the silver market, and you should be, gold might be a better option in this kind of environment.
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