Gold markets have initially tried to rally during the trading session on Monday, but then broke down towards the $1450 level. This is an area that should be supportive based upon the breakout from the ascending triangle back in July, and therefore there is a certain amount of “market memory” to be had in that area. The 200 day EMA underneath would be the next support level closer to the $1415 level. Following that, the $1400 level in then the $1350 level offer support in theory as well.
Gold Prices Video 12.11.19
To the upside, if we can break above the highs from the trading session on Monday, then it’s likely that we could go to the 50 day EMA. A break above that level could then reach towards the $1500 level, possibly even higher than that, continuing the longer term uptrend that we have been in for several months. At this point, the question is going to be whether or not there is a “risk appetite” for financial assets out there. Beyond that, there are lot of geopolitical concerns, and at this point that could send the market higher as well. Ultimately, the 200 day EMA will be crucial to determine the longer-term trend so that is the area on the chart that I’m paying the most attention to. The US dollar has been strengthening which of course doesn’t help gold, and what the Federal Reserve on the sidelines that doesn’t help either. At this point, if you’re bullish on gold you need some type of negative headline to come out and shake everyone up.
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This article was originally posted on FX Empire
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