Gold Technical Analysis
The gold market has been positive in the early hours on Thursday as we continue to press to the upside. But quite frankly, I think we are in an area that might be a little bit difficult to get above without a push. We’ve gotten fairly weak inflation numbers coming out of the United States, and that may have a little bit of an influence here. But quite frankly, with the US dollar getting hit as hard as it did in the early hours, I’m a little surprised that gold hasn’t taken advantage of this. So perhaps that correlation is starting to fade a bit. With this being the case, I am looking at gold with a buy on the dip mentality. I don’t necessarily think that you want to short gold.
I just think that it’s possible that it’s going to be very noisy along the way. Ultimately, I do think that we will get back to the $3,500 level, but it’s probably going to take some work to get there. So, with that in mind, I would be somewhat cautious here, I would prefer to see a move towards the $3,300 level that then bounces, that I could take advantage of. If we don’t get that, we could race towards the $3,500 level. But for me, it’s obvious there’s a lot of resistance up here and we just need some type of bigger announcement or bigger statement or something to get gold moving.
