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Gold Markets Continue to Attract Momentum
By: Christopher Lewis | April 5, 2024

• Gold has been very bullish on Friday, after initially showing signs of weakness. This is a market that a lot of people will continue to run to, as we recently have seen a major breakout in general.

Gold Markets Technical Analysis

And as you can see, we initially fell during the trading session on Friday only to take off yet again. At this point, I think you’ve got a situation where market participants continue to jump into gold and just simply chase price and momentum, which is basically how the markets continue to behave, regardless of the asset you are talking about. (I suspect this is computer driven more than anything else.)

I think ultimately this is a market that has to be approached through the long side, only that’s almost impossible to sell at this point with all of this strength. Quite frankly, it looks like we are just running headfirst into it. And with that being the case, it’s almost impossible to think of anything other than being long of this market.

I think given enough time, we not only see the market rally from here, but I think we go looking towards the 2500 level, possibly even higher than that. The market continues to be one that every time it dips, there are plenty of people willing to get involved and therefore I just can’t stress enough just how bullish this market is.

Granted, we are a bit overdone, but that doesn’t seem to matter at this point and therefore you just buy every dip that comes, as we continue to see so much in the way of chasing this market. The overall markets are a bit schizophrenic at the moment, so this makes the gold market even more attractive in general. This is a situation that I think only gets more aggressive due to the likelihood of the Middle East conflict expanding at this point.

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