Gold markets have rallied a bit during the trading session on Wednesday, as we had broken above the top of the hammer from the previous session. At this point, the market is very likely to continue to look at the $1450 level as crucial as it was the top of the previous ascending triangle. That being said, we have congressional testimony by Jerome Powell coming out, and that of course could cause a lot of volatility. I believe that this point the 50 day EMA which is starting to slope lower is going to cause some issues though, so breaking above that level and closing on a daily chart above there would be a very bullish sign.
Gold Analysis Video 14.11.19
To the downside, if we were to break down below the $1450 level, it’s likely that the market goes down to the $1415 level which is where the 200 day EMA is currently trading. That is an area that should continue to be crucial, and as a result it’s likely that the market participants will continue to see plenty of buyers underneath. If we did finally give up that level, then the uptrend is completely done, and the market may fall down drastically. It’s a bit difficult to believe that though, because central banks around the world are so loose with monetary policy which drives of the demand for precious metals, although it should be noted that the Federal Reserve is not loosening monetary policy so gold may lag a little bit against the US dollar. If you can buy it in other currencies, that might be the best play.
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This article was originally posted on FX Empire
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