Gold markets initially broke out to the upside during the early hours on Thursday as report suggested that the Chinese were leaving the trade negotiations early. That of course had people freaking out and therefore the Gold markets were one of the first places that people jumped into. Having said that, it was only a matter time before somebody came out denied that story and the market reverse. Since then, the market has broken down through the $1500 level, which is the beginning of significant support that extends down to $1490 level. That area has been crucial for quite some time, so breaking down below it could be rather significant as the 50 day EMA is sitting right there.
Price of Gold Video 11.10.19
The uptrend line underneath could continue to offer support as well, as we have been in a huge wedge. Quite frankly, gold markets have been an absolute mess as the games that politicians are playing only increase. That being the case, it’s very likely that the markets will continue to be very volatile, so quite frankly gold is probably something that will be difficult to trade over the next couple of days. If we did break out of the range on a daily close though, then you can start to put more money to work. You can see that we recently had a false breakout though, and that tends to trap a lot of traders so it’s likely that we will continue to see continued volatility and pressure in both directions.
This article was originally posted on FX Empire
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