Gold markets have bounced a bit from the 50-Day EMA, therefore it’s likely that we will continue to see a lot of choppy consolidation. Underneath, we have a massive amount of support just waiting to happen.
Gold Markets Technical Analysis
Gold rallied ever so slightly during the early hours on Friday, as we continue to pay close attention to the 50-day EMA. The 50-day EMA, of course, is an indicator that a lot of people will pay close attention to, and therefore, it’s worth acknowledging that it is a bit of an anchor for price, at least at the moment. At this point in time, if we can reach the $2040 level where we had seen a significant amount of resistance previously, that could cause some problems, but if we break above there, then it opens up another $20 to reach the $2060 level. After that, we could go to the $2075 level, which of course is a large round number and an area that has caused quite a bit of resistance in the past.
On the downside, we have the $2,000 level offering massive support, but I think this isn’t necessarily a level, but it is more or less going to be a region that extends down to the $1,980 level. In that general vicinity, we probably see the 200-day EMA reach there about the same time that the price does if we do pull back. So, I think it ties together quite nicely for a potential floor in the market. This of course is a very real possibility in this market over the longer term. In general, I do think that we remain bullish, but I also recognize that volatility continues.
Gold of course will move based on interest rates and geopolitical concerns around the world. And it certainly looks as if central banks are thinking about cutting back on tightening and possibly even loosening monetary policy. And those thoughts should be good for gold over the longer term. Furthermore, there are clearly enough things out there to be worried about, that gold should do fairly well later this year anyway. All things being equal, this is a market that I think you buy on dips, and you don’t necessarily want to sell it, at least not until we break down below the crucial 200-day EMA.
