Source: fxempire
Date: April 02, 2024
By Christopher Lewis
The gold market is a bit stretched to say the least, however – the fundamentals behind it are still strong, and something that has to be taken into account.
Gold Markets Technical Analysis
You can see gold has been a bit choppy and noisy as of late, but it certainly seems to be wanting to stretch higher. In this environment, I think you’ve got a situation where short-term pullbacks continue to attract a certain amount of attention, and I do think that it’s likely we will continue to see more of a buy the dip mentality.
The $2200 level underneath I think is an area worth paying close attention to as it was a bit of a barrier previously. It should have a certain amount of market memory attached to it. Ultimately, I do think gold goes higher and I’m actually looking for a move to $2500. It will take some time to get there, but as you can see, we’ve been in this explosive move higher and then grind sideways only to explode higher type of momentum market.
I don’t see that changing because there are a whole litany of reasons why gold should be going higher. You have central banks around the world buying it to begin with, so that of course puts a little bit of a floor in the market to begin with. Interest rates are dropping worldwide, so that also will have a major impact, positive impact on gold. And then on top of that, you have a lot of geopolitical concerns out there in an environment where there’s a lot of fear, there’s a lot of safety hunting and that’s exactly what’s going on with gold. So with all of that being said, it does make a lot of sense that every time it drops you start looking to pick up a little bit more.
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