Technical analysis of the gold markets
The gold market showed very strong strength in the early hours of Wednesday, as we continue to see the market only drifting higher. After all, there are many political issues to consider, both geopolitics and Tuesday’s US elections. We also have the court number on Friday, so that of course also plays a role. Interest rates in America have gone up and gold has gone up, but if you look around, interest rate policy has been to lower interest rates around the world, so that’s part of what’s going on here.
Keep in mind that Russia, India, Indonesia and China are all buying gold and those are just the central banks I know of. Short-term pullbacks continue to provide buying opportunities. The 2,700 level, at least for me, below that, I think will end up being a pretty important bottom in the market, at least in the short term. Breaking down down there, the 50-day EMA comes into the picture to also provide support.