Gold markets went back and forth during the course of the week, forming a bit of a neutral candlestick. However, we did break above the $1800 level at one point which of course is a bullish sign.
With that being the case, it makes quite a bit of sense that if we can break above the top of the candlestick, we could continue to go much higher. Longer-term, I fully anticipate the gold will go looking towards the $2000 level, not only due to the fact that we are in such a major uptrend anyway, but also there are plenty of fundamental reasons to assume that gold will continue to be attractive.
When you look at the gold situation, there are multiple factors that come into its favor. Example, central banks around the world continue to loosen monetary policy even further, thereby putting downward pressure on fiat currencies.
Read More : Spot Gold Sell Between $1772—$1775 Target
As long as that is going to be the case, that should drive gold much higher, leading to a potential move all the way up to the $2000 level. At this point, gold short-term pullback should continue to be buying opportunities that people take advantage of. After all, there is a massive amount of order flow between $1700 and $1775 currently, and we have just broken above there.
Next Week Data to watch
Next week will be a quiet one from the data-perspective. The week will kick-off with one of the most important releases to watch — the U.S. ISM non-manufacturing PMI from June.
“Potential upside in the data could surprise the gold market with another knee-jerk reaction, which will ultimately be a buying opportunity.
That does not necessarily mean that is going to be easy to go higher, just that the market must certainly has that attitude built in. Once we finally clear the weekly candlestick from this past week, then you should see momentum start to pick up to the upside yet again.
