Gold Markets Technical Analysis
Gold markets are testing the crucial 2,300 support barrier, and at this point, we will have to determine whether or not the uptrend in gold will hold. If we break down below the $2,280 level, and I suspect we have a situation where gold probably falls quite drastically. At this point, the US dollar is strengthening against a lot of currencies, but I don’t know if it is enough to break down gold. We’ll just have to wait and see. I do expect a huge fight here, so it’ll be interesting to see how this plays out, but given enough time, we are going to have to resolve this.
Are we continuing to consolidate or are we on the precipice of something rather destructive? If we fall from here, the $2,200 level could be targeted as well as the 200-day EMA, which is just above the $2,150 level. This is a market that of course is being absolutely destroyed by volatility, so we need some calm in this market.
If you look at the short-term charts, there’s been a meltdown about every 15 minutes and then a massive bounce and then a sell-off, so obviously somebody somewhere is in serious trouble with a lot more money than you have as a retail trader. You might be better off just simply sitting on the sidelines and waiting to see if we can recapture the 50-day EMA before buying. If we break down, then it’s probably a matter of buying gold at a much lower level because I certainly would not want to short this market at the moment with all of the geopolitical noise.
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This article was originally posted on FX Empire
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