Gold Markets Technical Analysis
The gold market has gone back and forth during the early hours on Friday, as it looks like we are going to continue to see plenty of support underneath the 50 day EMA, since it is just above the 2300 level, an area that recently had been a swing low. Ultimately, this is a market that I think given enough time will find buyers, but I think you also have to keep in mind that it’s likely that the 2400 level above is a massive ceiling. All things being equal, I think we are still in the midst of trying to work off a lot of the froth that we have seen over the last couple of months. And I do think at this point, it’s likely that we will continue to see more choppiness than anything else. But I do believe in the upward trajectory.
Therefore, I don’t have any interest in shorting gold. If we break down below the $2,300 level, then we could drop as far as $2,150 and still be in an uptrend and just then start to test the 200-day EMA. If we break above the $2,400 level, then $2,450 would be targeted, followed by $2,500, after that, market participants will continue to look at each dip as a potential opportunity to pick up cheap gold, at least as far as I can tell and as far as history shows on the chart. And until something massively changes, geopolitics, profligate spending, profligate borrowing, it’s hard to imagine a scenario where gold doesn’t continue to at least have a certain amount of appeal.
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This article was originally posted on FX Empire
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