Technical analysis of the gold markets
The market for gold looks to be fairly bullish again in the early hours of Thursday, but at the moment we are certainly testing the top of the overall range, and I think this is something worth paying attention to. If we can break above the $2,720 level, I would be a little more confident about the continuation of the uptrend. In the longer term, I think this will probably be the case. But right now we need to determine whether or not interest rates will fall enough for gold to rise, or whether the US dollar might calm down.
The geopolitical situation certainly makes a lot of sense if gold is strong and of course, if you buy gold now, you’re going to get more mileage, frankly, buying gold against something, you know, like the Australian dollar, the Canadian dollar, Japanese yen, things like that, not against the US dollar. But because it’s the standard, that’s how we measure gold and it looks like we’re going to try to break out, but we have to wait and see.