Gold Markets Technical Analysis
The gold markets have rallied rather significantly during the trading session on Tuesday in the early hours as we are well above the 3000 level. I thought that we would have more of a fight at $3,000, but clearly, we’re never going to have that. So, looking at this, I think we have a situation where traders are probably going to be looking at this through the prism of the measured move of the bullish flag. In other words, I think we’re going to $3,300. We won’t get there overnight, but I do think that’s your target now. Short-term pullbacks will continue to be attractive for value hunters. And the pullback and bounce method of trading is probably going to be preferred in general anyway.
The 50-day EMA is all the way down at the $2,860 level as it’s racing towards the $2,900 level. I do think at this point in time, the market is one that eventually will have to take into account the Federal Reserve, which has an interest rate decision, but more importantly, a press conference on Wednesday, so people will be paying close attention to what the Federal Reserve is leaning towards. We also have the Bank of Japan earlier on Wednesday, and then we have a couple of other interest rate decisions, Switzerland and, I believe, England, neither of which will probably have a major influence here on Thursday.
