Gold markets have been going back and forth over the last couple of weeks, as we hang about the $1500 level. That of course is a very large come around, psychologically significant figure, but beyond that we also have the 50 day EMA underneath that is offering a bit of support and turning a bit higher. Ultimately the market has been consolidating for about a month now, but now that we have seen so much in the way of digestion, we now need to decide whether or not it is simply digestion or distribution. We should know relatively soon, and if we do break down below the 50 day EMA the next major support level will be at the $1450 level which was the top of the previous ascending triangle.
Gold Price Video 23.09.19
To the upside, the $1600 level would be targeted, and if we can break above there it’s likely that we could go to the $1800 level, followed by the $2000 level. Quite frankly this will all depend on the central banks and global growth in general. Ultimately, the market will continue to be very choppy but given enough time it’s likely that we will see the buyers jump in front of the market and continue to drive higher. The markets had gotten a bit ahead of themselves, so I still believe that this is more along the lines of digestion than distribution. However, keep your eyes open for potential long red candle is that could change the overall attitude.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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