Gold markets rallied a bit during the trading session on Thursday, reaching towards the $1580 level, an area that has attracted a little bit of attention recently, but longer-term it’s likely that the market is going to try to get to the $1600 level. At this point, the market will have a lot of headwinds to break above, so a daily close above that level could kick off the next leg higher. That in fact could have the markets looking towards the $1800 level. At this point, the market should continue to see buyers on dips, as the 50 day EMA is starting to reach towards current trading. The 50 day EMA of course is an indicator that a lot of people pay attention to, and it does seem to be crucial in the gold market for that matter.
Price of Gold Video 14.02.20
Looking at this chart, if we were to break down below the 50 day EMA then I think we go looking towards the $1500 level underneath. At that point, the 200 day EMA should start to come into play, which of course is a longer-term indicator that will attract a lot of attention as well. Ultimately, the market does find buyers going forward, but the question isn’t so much as to whether or not if it happens, but when. I like the idea of buying dips because it gives us an opportunity to pick up gold “on the cheap”, but in the end term, taking a bit of caution and building up a core position slowly is probably the best way going forward. I have no interest in shorting gold currently.
Please let us know what you think in the comments below