After being overbought in recent months, gold could use a healthy pullback. Gold also has good odds of surging further. So rather unusually, gold could move either way this summer.
Gold has broken the pattern of lower highs and lower lows, signaling the downtrend has ended. Closing above the 18-day average signals an upward bias, with the battleground around $2390.
Interest rate cuts initially will be bullish for precious metals and base metals and energies. The overall trend will be there for gold and silver and copper for the rest of the year.
The NY Fed disclosed data on maxed-out borrowers with high credit card utilization rates, which typically signals tight cash flow and financial issues for the borrower.
Gold is up about 1.38%, not dropping significantly. It fell from $2475 to the $2340s, losing $100 an ounce. Currently, it's stable, trying to determine its next move.
Incoming US economic data releases (for May 2024) so far this week indicate a mild slowdown. Political uncertainty in key nations will always be bullish for gold and precious metals.
My initial target of $2428 for gold last year was exceeded before consolidation. I expect we will likely move up to the $2700 region in gold in the coming weeks.
I’ve set a $2300-$2365 buy zone for gold, which is almost reached. With most mining stocks and silver bullion overbought, I suggest buying in the gold buy zone, but in very modest amounts.
Despite not feeling like it, the market is up 0.11% weekly. It shows a bearish trend with resistance at the 18-day average. A close above $2387.5 might indicate gold stabilizing.
