- Gold prices continue to strengthen, with the market showing signs of life after initially pulling back to below the $2,300 level during Monday’s trading session.
- Market analysts are closely watching the US interest rates and global geopolitical issues, which could potentially boost gold prices.
- ForexLive currency analyst, Justin Low, is looking at short-term support and resistance, noting that the gold market is still a market you would want to buy into.
As gold prices continue to strengthen, market analysts are closely watching the US interest rates and global geopolitical issues. ForexLive currency analyst, Justin Low, notes that the gold market is still a market you would want to buy into.
Gold Strengthens: Still a Market You’d Want to Buy Into!
The gold market initially pulled back to below the $2,300 level during Monday’s trading session, but later showed signs of life. The market currently sees $2,320 as a slight barrier. However, given enough time, it is likely to rise higher. The Federal Reserve is still in the picture, therefore, you will need to pay close attention to the interest rates in the US. People are concerned about inflation, but this could actually help gold. Geopolitical issues worldwide also need to be considered, as they could potentially boost gold prices. Looking at the momentum on the chart also helps gold. Therefore, all things being equal, I believe we are still in an uptrend when it comes to the gold market. This makes it a one-way trade where you would not want to be short in the gold market.
“This Target Will Turn the Short-Term Trend More Bullish!”
ForexLive currency analyst, Justin Low, is looking at short-term support and resistance. The analyst notes that the hourly chart is currently a major focus for gold. Low points out that spot gold caught a solid bid up to $2,320 with the dollar’s retreat on Friday. However, it met with bids at the 200-hour moving average (blue line) before reverting to $2,280. The analyst notes that the price action stabilized just above the weekly low level before this. But we are still there over the past week! So we are sitting around and within $2,300. Low says that gold is “still facing resistance from its 200-hour moving average at $2,317 right now”. The analyst says, “Sellers are staying close to the short-term key level, which is limiting further gains for now.” Low finally draws attention to this level: However, gold buyers are ready to take full advantage of a break above the short-term key level. This will turn the short-term trend more bullish with a notable target of $2,352, the highest level on April 26. But at least for now, respect should still be given to the technical posture above.
Conclusion
In conclusion, as gold prices continue to strengthen, market analysts are closely watching the US interest rates and global geopolitical issues. ForexLive currency analyst, Justin Low, notes that the gold market is still a market you would want to buy into. However, respect should still be given to the technical posture above.
