Gold Markets Have an Explosive Day

Spread the love

As things stand right now, I do believe that we are in the process of a longer-term bottoming pattern.

Will markets have rallied rather significantly during the trading session on Thursday as we have reached the $1870 level. This is an area that has been important previously, so it’s not you surprised to see that we have stopped here. If we can break above here, then it’s very possible the gold market looking to reach the $1900 level over the longer term. If that’s going to be the case, then is very likely that we will see the US dollar take a bit of a hit.


A lot of this could come down to risk appetite, so pay attention to what other markets are doing. If there seems to be a general concern about owning anything that has risk attached to it, that may or may not work for gold, depending on how traders are looking at it. I know it’s a bit confusing, but at the end of the day gold can be a lot of different things. Pay attention to bond markets, because of interest rates start to soar again, that will more likely than not put downward pressure on gold, and could cause a lot of headaches. Ultimately, I think this is a market that is going to continue to be difficult to hang onto for anything other than a longer-term investment. I see a lot of noise just above, but it certainly looks as if we are trying to build up enough bullish pressure to rally again.

On the downside, I see the $1840 level as a potential area of support, and therefore could be an area where you could reenter the market if we do pull back. I don’t have any interest in shorting gold, at least not in the meantime. I think it is probably only a matter of time before gold takes off toward the $2000 level, especially if yields continue to fall. After all, if people start buying bonds again, that will drive yields lower. The bond markets have been erratic, and unfortunately for the rest of us, that means chaos in our markets. Keep in mind that bond markets tend to drive where the rest of the world goes, so you really need to learn as much about them as you can. As things stand right now, I do believe that we are in the process of a longer-term bottoming pattern.

Gold chart

Source link

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x

Get Registered For FREE Forex Training!

Fill In Your Details To Get Registered For FREE Forex Training!

Do You Know About Forex Trading?(Required)
Have you done Forex Trading before?(Required)
Where did you hear about us?(Required)