Gold markets have initially fallen on Thursday, only to show signs of support again at the 200 day EMA.
Gold markets have initially fallen during the trading session but then turned around to show signs of support at the 200 day EMA yet again, due to the fact that the interest rates in the United States are all over the place or another. This is due to massive amounts of stimulus coming, which has people selling off bonds, driving up the interest rates. As a knock on effect, the US dollar has been gaining a bit on the occasion, and this of course has a huge “knock on effect” in the gold market. In other words, we are all over the place but at this point in time I think that we are trying to stabilize a bit in order to turn around and go higher.
If we can break above the $1860 level, then it opens up a move towards the $1900 level, followed by a move towards the $1960 level. At this point, I have no interest in shorting the gold market, and I do think that we are seeing an attempt to reestablish the uptrend. If we do break down below the $1750 level, then it is possible that we could break down rather significantly. It is not until then that I am concerned about the gold market, and I do think that this is a market that will continue to be noisy, but I think that a lot of safety will be desired out there, so with the easy money policy I do think that eventually becomes the focus of gold traders.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.