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Gold Market Technical Analysis
Gold markets initially tried to rally during the trading session on Friday but gave back some of the gains as we got close to the $1850 level. The 200 Day EMA above is also offering quite a bit of resistance, so I think at this point in time gold probably needs to pull back a bit in order to build up some type of confidence. Gold has been rallying a bit but with the US dollar strengthening as well, does cause quite a bit of volatility.
The $1800 level underneath is important, and of course is a large, round, psychologically significant figure. We have seen a lot of area noise over the last several years, right around this level. Because of this, I think the market is trying to find its footing, and it is possible that we end up rallying over the longer term. However, we need to pay close attention to interest rates in the United States, because as they rise, they have worked against the value of gold quite precipitously at times.
On the other hand, if we were to turn around a break above the 200 Day EMA, then it is likely that we would see the market go looking to the $1900 level, but it would not necessarily be an easy move to make. Because of this, you need to be very cautious but recognize that we have a scenario where the market is probably going to continue to be very noisy, and therefore you need to keep your position size reasonable. With this, a “buy on the dip” trade may be initiated on signs of support, but I would keep that trade small.
Gold Price Predictions Video 23.05.22
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This article was originally posted on FX Empire