- The gold market continues to see a lot of buyers on dips in this market on Thursday, as we see plenty of interest still.
The gold market has bounced around a little bit during the trading session here on Thursday as we continue to see a lot of noise right around the $5,150 level. The $5,150 level of course is an area that previously was resistance, so it should be supported now.
Any breakdown from here could open up the possibility of a drop to the $5,000 level, an area that obviously is a large round psychologically significant figure and will attract a certain number of headlines. There are plenty of reasons to believe that there are buyers underneath. For starters, all you have to do is look at the chart.
Top Regulated Brokers
Geopolitical and Macroeconomic Tailwinds
We have been grinding in a relatively stable manner after that dramatic candlestick since a couple of weeks ago. I think buying the dips remains the way going forward, especially as central banks are out there buying gold.
There are a lot of concerns about the possibility of the Americans and the Iranians firing missiles at each other. That has people concerned as well. The Federal Reserve is expected to cut rates a couple of times this year. That helps gold and then ultimately there are a lot of concerns about trade tariffs and that also extends into other geopolitical issues.
Quite frankly, the chart is going from the lower left to the upper right. There is no reason to fight it, so at the very least I would say you should not be looking at shorting this market. Finding a little bit of value and taking advantage of a potential pullback and then an attempt to get to the $5,500 level is exactly how I plan on playing this market. I have no interest whatsoever in shorting.
Ready to trade our Gold daily analysis and predictions? We’ve made a list of the best Gold trading platforms worth trading with.