The gold markets have gone back and forth during the trading week, as we continue to dance around the 50 Week EMA.
Gold Weekly Technical Analysis
Gold markets have gone back and forth during
the trading week as we have been hanging around the 50 Week EMA. At this point, the market looks as if we are going to continue to see a lot of noisy behavior, with the uptrend line underneath offering quite a bit of support near the $1800 level. As long as we stay above the $1800 level, it’s possible that we will have buyers coming to pick this market back up.
If we were to break above the miniature double high that we just made over the last two canvases, it’s likely that we would open up a possible move to the $1900 level. The $1900 level is a large, round, psychologically significant figure, and also an area where we had seen previous support. Breaking above that level, then it’s likely that the market could go to the $2000 level eventually. That being said, the market is likely to continue seeing a lot of noisy behavior, so I think it’s only a matter of time before we rally, but it’s also going to be a very difficult trade to hang onto.
Because of this, you need to keep your position size reasonable, as the volatility will be difficult to sit through at times. That being said, the market is likely to see a lot of noise but pay close attention to the overall interest rate situation, because if the rates start to fall off, then it should push gold back to the upside. Alternately, if we start to see massive rate spikes, that will work against gold and could send us lower. It’s worth noting that there is a two year trend line just below.