Gold Prices Drive North

Gold Prices Drive North

$XAU $GLD $USD

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

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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