Gold markets initially tried to rally during the trading session on Wednesday, but then broke down from the $1490 level. At this point, the market is likely to continue seeing a lot of negativity, as there is more of a “risk on” type of flavor to the markets. That being said, the $1450 level underneath is massive support, and if that were to give way to selling pressure, we will more than likely go racing towards the 200 day EMA. There is a massive gap underneath the $1450 level, so don’t be surprised at all to see a bounce from that region. That isn’t to say that I’m willing to buy it blindly, but a bounce after a pullback could be an opportunity. That being said, it’s a difficult trade to take.
Gold Price Video 05.12.19
On the other hand, if we were to break above the $1500 level, then the market will more than likely take out to the upside for a bigger move. That would be based upon some type of really negative news, probably involving the US/China trade situation. That being said, it’s obvious that the market has been thrown around quite a bit by those headlines recently, so don’t be surprised at all to see that volatility but occasionally. However, the resiliency of risk appetite has been rather impressive, and that will continue to work against the value of gold in general. I expect a lot of noise over the next couple of sessions, with the $1500 level above offering significant resistance, while the $1450 level should be massive support.
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This article was originally posted on FX Empire
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