Technical analysis of the gold markets
The gold market continues to look strong during the Friday session as we continue to move higher. And that’s why I think there’s a situation where short-term pullbacks almost certainly provide buying opportunities. Remember, there are a huge number of reasons why gold is rising, not the least of which is central banks around the world cutting interest rates. I mean, that’s one of the biggest drivers of the gold market. That said, we are a bit tense, although I wouldn’t be surprised at all to see a small pullback, but that pullback should be a buying opportunity around the $2,680 level.
The market will also rise based on geopolitics, which obviously favors the search for some form of security. And then you also have to keep in mind that several banks around the world, such as the central banks of India, Russia and China, all buy gold as well. So that comes into the picture and opens up the possibility of a somewhat permanent bid in this market.