Technical analysis of the gold markets
The gold market was all over the place in the early hours of Wednesday as we continue to see a lot of noise overall. I think gold will remain a very range bound place and despite the fact that the CPI numbers came in at 0.2 month on month instead of 0.3 as expected, we probably have a situation where we can honestly said, the gold market probably hasn’t seen enough yet to make a decision. I think we’ll have to go sideways for a while, but that makes sense if you look at how the market behaved in 2024.
We started at about 2,070 and ended at 2,790 at one point. So it was quite a positive year. So it makes sense to get rid of some of the excess foam. I still think this will probably be more or less a buy-on-the-dips scenario. That’s why I’m a little hesitant to go short. I think you have a situation where you’re looking for value. The 50-day EMA could be support and the $2,600 level almost certainly will be, assuming we go that low. If we were to break above $2,720, I think this is the breakout signal. But until we get above that, I think gold is fairly neutral, with an underlying positive bias.