Gold Markets Technical Analysis
Gold markets have been a little bit choppy in the early hours of Monday, but keep in mind, it’s also Martin Luther King Jr. holiday in the United States and therefore, you’ve got a situation where the liquidity in the futures market would have been limited not only by volume, but also by time, as it wasn’t open for the entire session. So, with that, you can only read so much into this. But it does look overall like the market’s trying to get above the $2,725 area, which if it does, it allows gold to continue going much higher.
Short-term pullbacks, albeit likely, should be thought of as potential buying opportunities as long as we can stay above the 50-day EMA. If we were to break down below there, then it could open up a move down to the $2,600 region, which has been support so far. There are plenty of reasons to think that gold goes higher, not the least of which is that we have massive amounts of debt around the world that is a major problem, but we also have plenty of geopolitical concerns as well.