Gold markets gapped higher to kick off the week, but then fell towards the $1500 level before finding buyers again. This is a market that seems to have a lot of consolidation in this region, and beyond that we also have a significant amount of potential support underneath as well. Because of this, it’s very likely that we will simply go back and forth, showing signs of uncertainty as the market recognizes the $1500 level as crucial and psychologically important, but beyond that we also have the 50 day EMA which is currently trading at roughly $1493 underneath. Beyond that, there’s also an uptrend line underneath, so I think that there are plenty of places that the buyers come back in and pick this market up.
Gold Analysis Video 08.10.19
If we break above the highs from the trading session on Thursday of last week, that would show a continuation of the uptrend and will more than likely go looking towards the $1540 level, and then possibly even the recent highs seen at the end of August. Longer-term, I do think this happens but obviously there is a lot of noise out there that continues to throw the gold market around as we worry about the US/China trade talks, global economic headwinds, and perhaps even more importantly, what central banks are doing. As they continue to ease monetary policy, that typically puts upward pressure on the gold market. Longer-term, I believe the Gold goes much higher, as there are so many fundamental reasons for it gaining.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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