Gold has seen some buying pressure again on Friday, as traders have plenty of reasons to believe that this is still a bullish market.
Gold
Gold has rallied to break above resistance at one point during the Friday session, but it looks like we are struggling a bit. All things being equal, I think short-term pullbacks offer buying opportunities that a lot of people will be watching and I do think that it's probably only a matter of time before gold goes higher.
After all we have a whole slew of reasons for it to go higher. Not the least of which is the tensions that are out there between the Americans and the Iranians but there are also other concerns as well as central banks around the world continue to jump into the market and buy more gold. And of course, we have interest rates around the world supposedly coming down with most central banks.
A Strong Technical Uptrend
Beyond that, we also have the technical analysis, quite frankly this is a strong uptrend that we have to pay close attention to. I believe that there's a floor in this market near the $5,000 level. The 50-day EMA is just above the $4,800 level.
All things being equal, this is a market that I think remains buy on the dip and I do think that it eventually goes looking to the $5,500 level given enough time. I have an inkling that we will not only reach the highs, but we will probably break above the highs given enough time, but I don't expect that to be a very quick thing. I think this is a situation where traders are going to continue to look for value on short term charts and take advantage of it. Over the longer term I do anticipate that gold remains a winner.