Gold markets initially tried to rally during the trading session on Thursday, but at this point it looks as if the 50 day EMA, and perhaps even more telling the shooting star from the previous session, are offering enough resistance to keep the market in check. Keep in mind that the jobs number comes out on Friday, and that of course makes a huge difference in how the market functions. Because of this, it would have been a lot to ask for a breakout during the trading session without some type of major news catalyst.
Price of Gold Video 06.12.19
Just above, there is a downtrend line that has crossed the $1500 level, so if we can break above the $1500 level is likely the gold will continue to go much higher. I think at this point it’s likely that we will continue to see a lot of downward pressure, with the $1450 level offering a significant amount of support. If that level gives way, this market will more than likely reach towards the 200 day EMA. That level should be supportive, but if it were to get broken to the downside it would be the end of the uptrend remember, the Federal Reserve has stepped away from cutting interest rates and that has put a bit of a damper on gold strength. However, there’s always going to be the occasional headline out there that could send gold higher. Unless we get some type of rather “risk off” type of move, I suspect that gold is going to struggle in the short term.
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This article was originally posted on FX Empire
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