Gold Markets Technical Analysis
You can see that the gold market rallied early during the trading session on Friday, as it looks like we are going to threaten the $2,400 level again. This is an area that has had significant resistance previously. So, if we can break above there, that would obviously be a huge victory at that point in time.
Gold, almost certainly, will try to look at the $2,500 level. On the other hand, if we see the market pullback from here, we could see plenty of support areas, especially all the way down to the $2,300 level. The 50 day EMA comes into that picture, and I think that solidifies at $2,300 level as support in general. At this point, the question isn’t so much as to whether or not gold is strong or whether or not it’s in a bullish market.
It’s just a question now as to when will we breakout to the upside with the geopolitical concerns around the world, it does make a certain amount of sense that gold and tends to rise. And then of course, you have the interest rate situation which is all over the place. Yes, rates are high, but at the same time, Wall Street continues to have this fantasy that the Federal Reserve is going to come and cut rates aggressively.
Perhaps more importantly, both of those central banks are out there buying masses of gold, so that obviously puts a little bit of a bid under the market as well. In general, this market continues to see a lot of noise, but I do think that it’s positive overall.
By Christopher Lewis
Source: Fxempire
