Technical analysis of the gold markets
The gold market recovered somewhat in the early hours on Thursday as it appears we have a scenario where breaking the 50-day EMA may have brought in more buyers. It is more likely that the market continues to favor an upward move towards the USD 2,800 level. The $2,800 level is obviously an area that we had previously pulled back from, so I think that has a lot to do with perhaps outpacing the market. If we can get above that, it will open the $3,000 level. I think near-term pullbacks still provide plenty of support around the $2,600 level. And right now, I think there are plenty of reasons for gold to go higher, even off the chart.
While the chart shows a lot of momentum, the reality is that geopolitics in Ukraine is getting worse, not better. For this reason, some asset managers will put a little more money into the gold market to protect their wealth. Moreover, we also have central banks around the world that are doing everything they can to accumulate gold, mainly China, Russia, Indonesia, India and several other major banks, especially in that part of the world. So I think gold has quite a bit of momentum and is a dip market buy. I simply have no interest in falling short in this market in the short term because it is so strong.