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Gold Markets Weekly Technical Analysis

Gold rose during the bulk of the week as we continue to see a lot of bullish pressure in general, even though we have been somewhat consolidating for the last couple of months. That does make a certain amount of sense though because we had spent quite a bit of time, roughly a year and a half, rallying through a lot of volatility. Nonetheless, this year is set up as a potentially good one for gold due to the fact that central banks around the world are buyers.

Also, we have monetary policy almost certainly getting easier in many of the world’s largest central banks so that in and of itself could be a bit of a driver for gold markets. Furthermore, we also have geopolitical issues and that of course doesn’t seem to be going anywhere so it all ties together for a fairly decentgold market

The usual negative correlation to the US dollar could come into play, but quite frankly, I don’t even think that’s going to be a big issue. Really, there are times when both the dollar and gold can rally, and with so much geopolitical instability that could very well be the way we behave this year. The $2,075 level above continues to be a major resistance barrier, and if we can break above there, we kick off the next leg higher in thegold market

Keep in mind that the $2,000 level underneath is a major support level that should be watched very closely and therefore I believe it will be respected and it could offer a buying opportunity. Regardless, I have no interest in selling this market at the moment, it is far too bullish to be short of it.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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