Technical analysis of the gold markets
Gold markets were a bit choppy in the early hours of Monday, but keep in mind that it is also the Martin Luther King Jr. holiday in the United States and therefore there is a situation where liquidity in the futures market would be decreased. limited not only by volume, but also by time, as it was not open for the entire session. So with that, there’s only so much you can read into this. But overall, it looks like the market is trying to break above the $2,725 area, and if it succeeds, gold could continue to rise much higher.
While this is likely, short-term pullbacks should be viewed as potential buying opportunities as long as we can hold above the 50-day EMA. If we were to break down below, it could open a move down towards the $2,600 region, which has been support so far. There are plenty of reasons to think gold will go higher, not least because we have huge amounts of debt around the world, which is a big problem, but we also have plenty of geopolitical concerns.