Technical analysis of the gold markets
The gold markets have challenged the $2,600 level, an area that is of course a big psychologically significant figure, but it is also an area that has been important a few times in the past. That said, I think we have a situation where buyers will continue to view gold on dips as offering value. And of course, gold has probably sold off a bit this past week as the geopolitical issues may have slowed down a bit. That said, I think the market will continue to see a lot of value chasing and perhaps FOMO at this point.
FOMO in the gold market can be very cruel, but we’ll have to wait and see how this plays out. Regardless, I have no interest in shorting this market. Frankly, there are far too many reasons why gold would go higher. Not least is that central banks will continue to lose some of the monetary policy. And of course, speaking of central banks, several central banks around the world are big buyers of gold. So now that that’s the case, I think you have to look at this from the prism of a market that will continue to provide opportunities every time it pulls back until the fundamentals change. And at this point, the fundamentals are far from changing the overall actions in this market.