Gold markets initially tried to rally during the day on Wednesday but gave back the gains to selloff. We are still sitting above the $1300 level though, and of course the psychologically important 50 day EMA. The market has been flattening out a bit over the last couple of days, and I think at this point we are going to see whether or not the Federal Reserve is hawkish or dovish to decide the next move. If the balance sheet runoff continues and of course there is the possibility of an interest rate hike in 2019, both of which could be bullish for the greenback, which would be negative for gold.
Gold Price Video 21.03.19
However, the Federal Reserve is expected to be soft and acquiescing to Wall Street yet again, giving them cheap money. That should be good for gold longer-term but obviously we need to get through this hurdle before we continue to go higher. A break out above the $1310 level, the market should then go to the $1325 level. Otherwise, a break down below the $1285 level should send the market down to the $1275 level, which is also where the 200 day EMA meets up.
One thing I think you can count on is going to be a bit of volatility, but we should get an impulsive candle that should continue to push this market in one direction or the other. Be cautious, but wait for a bit of a break past one of the levels previously mentioned to put money to work.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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