Gold Continues to Look Strong, But Pulls Back on Monday

NEW YORK (July 8) The gold market has shown itself to be a bit soft in the early hours of Monday, but still continues to look very strong, and has recently seen a lot of buyers jump into the market on any given chance.

Gold Markets Technical Analysis

The gold market pulled back just a bit during the early hours on Monday, as we got a little closer to the $2,400 level. This is an area that’s had significant resistance more than once. So, it’s not a huge surprise. Quite frankly, I think this is a situation where you are buying dips, and I do think eventually we break out to the upside. As things stand right now, it looks like the floor in the market starts at the $2,300 level, extending down to the $2,280 level. In general, this is a market that is supported by not only that area, but the 50-day EMA, and the fact that we had so much momentum to the upside.

After all, we shot straight up in the air for a while and now we are working off some of that froth. Eventually, we could break above the $2,450 level. That opens up a door to the $2,500 level and then much higher than that. In general, this is a market that I have no interest in selling and even if we do break down below the support level, I think there is a massive amount of support near the 200-day EMA, which is also near the crucial $2,150 level.

In general, this is a market that I think every time it drops, you’re looking for an opportunity to pick up cheap gold because, quite frankly, central banks around the world continue to buy it. We have a lot of geopolitical concerns. And of course, there’s also the possibility that central banks around the world start cutting aggressively.

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