Gold Market Technical Analysis
Gold markets initially fell on Thursday to reach down to the bottom of the overall consolidation area that we have been in for a while. Because of this, buyers came back into picked this market, as we have seen a lot of noise in general. Ultimately, this is a market that will eventually break out, but right now it does not look like it has anywhere to be. The 50 Day EMA is racing toward the 200 Day EMA just above, so that will offer technical reasons to think that pressure will be there as well.
Looking at this chart, if we were to break down below the bottom of the candlesticks for Thursday and Wednesday, then it’s possible that the market goes looking to the $1800 level. The $1800 level is an area that a lot of people will pay close attention to, as it is a large, round, psychologically important figure. Furthermore, there is an uptrend line sitting there as well, so I do think that the market is going to find a lot of buying pressure in that area. If we were to break through it, gold could fall apart rather rapidly.
Alternately, the $1880 level above has offered significant resistance, and if we can break above there, gold could go racing toward the $1900 level, possibly even the $2000 level over the longer term. That being said, there’s a lot of noisy behavior overall, so I think we are probably going to be better served trading back and forth on short-term charts until the market makes up its mind. Regardless, you cannot trade huge positions.
Gold Price Predictions Video for 24.06.22
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This article was originally posted on FX Empire