Gold markets pulled back a bit during the trading session on Friday, giving back the gains from above $1250 that were found last week. I think at this point, the 50 day EMA could cause a bit of support, and if we turn around to break above the $1250 level again, then I think we could continue to see bullish pressure to the upside. We have been trying to build a base for quite some time, so I think that jumping in and buying this market in little bits and pieces will probably be the best way to approach it. However, if we were to break down through the uptrend line on the chart, or even break down below the $1200 level, that would change a lot of things and probably send Gold down to much lower levels, perhaps down to the $1000 level.
Gold Prices Video 17.12.18
At this point, I would expect a lot of support underneath at the $1000 level as it is structurally and psychologically important on the monthly charge. However, the 50 day EMA is looking likely to turn up from here, and I think we will continue to see buyers overall. Gold could be getting a bit of a “safety bid”, but if the US dollar suddenly takes off in strength that could send Gold back down. This of course is true unless we have a major “safety bid” in assets around the world, then in those situations both Gold and dollar Rallied. If we break to a fresh, new high I think it’s time to start adding and aiming for $1300.
This article was originally posted on FX Empire
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