SPDR Gold Trust (GLD)

[DiscoverGold]

Gold Markets Looking for Buyers
By: Christopher Lewis | April 24, 2023

• Gold markets have been relatively quiet in the early hours on Monday, as we are testing a support level currently.

Gold Market Technical Analysis

Gold markets had a pretty tough day on Friday, but it looks as if the market is trying to find support just below the $2000 level. Ultimately, if we were to turn around and take out the highs from the Friday session, then it’s possible that we could go back toward the $2050 level, perhaps even all the way to the $2100 level. On the other hand, if the market were to break down below the bottom of the candlestick on Friday, then it could open up a move down to the 50-Day EMA near the $1950 level.

Gold of course is going to continue to be used as an asset to protect wealth, and in the present environment that does make quite a bit of sense. After all, the gold markets have been very bullish for quite some time, and now we are simply going back and forth and killing time. That makes sense, because a lot of times you have to work off the excess froth in the market in order to get a continuation.

It’s worth noting that the $2100 level above is an area where we’ve seen a lot of resistance previously, so if we were to somehow take off and break above there, gold markets will become more “buy-and-hold” than they are at the moment. Either way, I don’t have any interest in trying to short gold, because it is so bullish. It’s not until we break down below the 50-Day EMA that we can even have that thought, and quite frankly I just don’t see how you can short gold in this type of environment. Even more impressive would be buying gold against other currencies instead of the US dollar.

In the short-term, I anticipate seeing a lot of back-and-forth choppy behavior, but I prefer to buy dips as it goes with the longer-term trend, and I’m not trying to get too cute by shorting the market every time it rallies. Yes, range bound traders will probably do fairly well in the short term, but I prefer to trade with the trend and especially when it’s such an obvious trend as we have at the moment in this market.

Read Full Story »»»

DiscoverGold