Gold markets weekly technical analysis
The gold market is up quite a bit over the course of the week as we continue to see a lot of money entering the picture and pushing gold higher. After all, the Federal Reserve cut rates by 50 basis points last week, so it continues to assume that the market is likely to be in a buy-in-any-dip scenario, and I think that’s the right thing to do. That doesn’t necessarily mean we won’t pull back, and it doesn’t necessarily mean we won’t pull back significantly.
Frankly, we are overdone, so it is very difficult to chase gold all the way up at this very high level. However, if we were to drop to an area near the $2,600 level, I am willing to start the conversation about buying more gold. Below that we have the USD 2,530 level and finally the USD 2,475 level. The market has recently had a big impulsive move, so don’t be surprised if things calm down a bit.