Gold markets rallied Wednesday as we continue to see the markets drive higher. It is now above 1600 so it is likely to continue to mark the longer-term target at 1800.
Short-term pullbacks continue to offer buying opportunities for value, with the 50-Day EMA underneath at 1550, it is very important for the market overall.
As long a central banks around the world continue to their loose monetary policy it should continue to be a major driver of gold North.
Gold has a lot of reasons for buyers to get positioned. A healthy pullback should be thought of as offering value, and therefore it’s likely that the market is a “buy on the dips.”
We have no interest in short this market, because it is unlikely to see any major turnaround on the chart, so I think we are on the verge of a bigger move. The only thing keeping the gold market capped here is the fact that USD has strengthened.
The US Dollar Index (.DXY) advanced 0.2% at 99.59.
Gold futures settled 8.20 higher (+0.5%) at 1,611.80 oz, its 5th straight positive session, despite strength in both the major averages and the Buck