As this channel continues to play out, gold markets have experienced a slight pullback during Wednesday’s trading session. It appears that the $1800 level will continue to be significant, but I believe it is fair to say that gold continues to enjoy a great deal of popularity. If we can now break above the highs, we will gradually grind our way to the $1875 level, which has proven significant on several occasions. Breaking above that level then enables a much larger rise, possibly even to $2000.
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Keep in mind that, depending on the situation, both interest rates and gold can climb at the same time. Keep in mind that the US currency can potentially climb in tandem with gold, so keep this in mind. I’m aware that there are many experts who assert that this is impossible, but one need just consult a chart from the 1980s to discover that this is not the case.
The 50-Day Exponential Moving Average is about to cross, so I believe it is likely that this market will continue to rise in the long run. This is not to imply that there won’t be periodic pullbacks, but I view them as potential buying opportunities since gold is poised for a strong year. Between now and the end of the year, the market is likely to be quite illiquid, so I would not anticipate significant price swings, but I see the bullish argument playing out.
