The gold markets initially tried to recover on Friday, but then fell a bit, as traders have run out a bit. It is not a big surprise to see how this market recedes a bit, since operators have been flocking lately, maybe a little too excited.
Initially, the gold markets have tried to recover during Friday’s session, but then they broke a bit, as we continue to see a lot of noise. Overall, this is a market that I think will continue to see buyers based on the idea that central banks around the world soften monetary policy and, of course, fiat currencies are being affected. The US dollar has risen a little, but this has more to do with the recovery of Treasury bonds and the flight of problems than with anything else. Overall, I think this market will continue to rise, but I also believe that we have advanced a bit.
Beyond all that, the weekly candlestick looks a bit exhaustive, forming something that is not a shooting star, but is close to it. It is very likely that there will be a pullback to the level of $ 1,500, but frankly, I think it will probably even go down to $ 1,450, since it is a significant resistance level that has not been retested significantly. At this point, I would be a buyer of any drop, and I think we could go to the $ 1550 level, and then eventually the $ 1600 level after that. One thing to keep in mind is that the 50-day EMA is also starting to reach that crucial level of $ 1450, and that, of course, will attract many operators of large amounts of money in the long term.
I see no reason to sell gold, just reasons to buy it. Even if they told me that the market is going to collapse from here, I would still expect a buying opportunity. The conditions are perfect for precious metals to continue rising, and that will not change soon. On the positive side, I think we are still going to the $ 1,600 level and, finally, to the $ 1,800 level. One thing to keep in mind is that gold tends to move in increments of $ 25, which of course is very symmetrical and easy to operate in the market. We are in an uptrend, and we will probably be in the foreseeable future.