Gold markets initially tried to rally during the trading session on Wednesday, but then ran into significant trouble to roll over and go looking towards the $1465 level. There is a significant amount of support below, especially in the form of the $1450 level, which was the top of the previous ascending triangle. We have recently bounce from that area, and it is worth pointing out that every time we have pulled back just above there, the buyers have stepped back in and picked up gold.
Gold Prices Video 21.11.19
We are probably just one really bad or bearish headline out there away from gold going higher, but recently it has been a bit muted. I think at this point a lot of traders are hoping that the US and China find some type of common ground for the so-called “phase 1” scenario, but at this point it doesn’t really seem as if we are getting closer. Beyond that, there is a significant amount of geopolitical concerns out there that could also drive the value of gold higher. With that in mind I am bullish until we break down below the major support that I see at the $1450 level. If we were to break down below there, then the next target would be the 200 day EMA and breaking down below there would be extraordinarily negative. Until then, I look at this as a decent pullback but a slow one, which typically means that we will get continuation given enough time. For what it’s worth, the $1450 level is the 38.2% Fibonacci retracement level.
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This article was originally posted on FX Empire
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