SPDR Gold Trust (GLD)

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Gold Continues to Build a Base Above $2300
By: Christopher Lewis | May 8, 2024

• The gold markets continue to see a lot of support just below, as the market will continue to try to build a bit of a base in this general area, just above the $2300 level.

Gold Markets Technical Analysis

The gold market fell initially during the trading session on Wednesday as the $2,300 level continues to cause quite a bit of support. All things being equal and all things being the same, I think that this is a market that sooner or later will continue to go higher, but we may be taking a little bit of a breather at this point.

Ultimately, this is a market that, given enough time, should see buyers coming in to try to take out the recent highs at the $2,400 level over the last week or so and then go looking to the $2,500 level. Underneath, I see a lot of support that extends down to the $2,250 level, which is also backed up by the 50 day EMA. With that being said, it does look a little bit like a bullish flag. And I think that bullish flag is something that you need to pay attention to, albeit a messy one.

It does suggest that gold markets do have another leg higher in them. It makes a lot of sense if you think about it, due to the fact that there have been major geopolitical concerns, and with that, gold will flourish anyway. Furthermore, we also have a situation where the governments around the world are borrowing massive amounts of money, including the United States. So therefore, that also tends to make gold a bit more attractive. I think at this point, you are just simply seeing consolidation before the continuation.

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