The gold market has been strong in the early part of Wednesday session, as the PMI numbers around the world have been a bit of a mixed bag. At this point, the market is likely to see a lot of interest in safety assets, as it is becoming increasingly obvious that we are slowing down.
The gold market has rallied significantly during the trading session on Wednesday, as we continue to see a lot of noisy behavior overall. That being said, this is a market that I think continues to be very volatile. But I think also you are looking at a situation where we are very much in an uptrend, and it looks like central banks around the world are going to accelerate their cutting. If that’s going to be the case, then I think gold probably reaches the highs again at the $2,475 region.
After that, we could go looking to the $2,500 level, so pay close attention to that as well. Short term pullbacks continue to be buying opportunities from everything I see here and I believe that the $2,400 level continues to be an area where a lot of traders pay close attention to for the idea of potential support. There is a lot of fear out there and there are a lot of geopolitical concerns, plus, there are central banks out there buying gold: Russia, Turkey, China, places like that.
So, all things being put together, I think this leads to a much higher level in the gold market before it’s all said and done. We’ve had a nice pullback. We now have started to bounce. I think we will get a bit of follow through over the next several sessions as the market is still very much in a massive uptrend.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.