Gold Markets Technical Analysis

The gold market rallied again during the early hours on Thursday as we continue to see traders paying close attention to the central banks around the world. And the central banks around the world are going to continue to see the need to cut rates and that of course will have people in the market trying to take advantage of it.

With that being the case, gold does rally based on lower interest rates. We have broken out to a fresh new high, so there’s no real reason to think anything’s going to change at this point other than pricing going higher. I just don’t see an argument for anything other than market participants jumping in and buying every dip. So this remains a buy on the dip market.

I believe that the $2,150 level is massive support as we had broken out of that bullish pennant. And at this point in time, the target is probably close to $2,500. Obviously, it’s going to take some time to get there, but at the end of the day, I think you’ve got a scenario where that is very likely going to be the case that we eventually make it to that lofty level.

Ultimately, I think that anytime you get any value or whatsoever, you take advantage of it, you buy dips, you never sell gold, at least not in this environment, and on top of that, not only do we have lower interest rates coming, but we have geopolitical concerns, which of course can have a major positive influence on gold as well. Remain long and strong in this market.

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