Gold Eyes Golden Cross as Silver Attacks 200-Day EMA Ahead of CPI

Gold Technical Analysis

The gold market has rallied slightly during the early part of the trading session here on Wednesday to show signs of life again as we are awaiting CPI numbers. Ultimately, this is a market that’s been rallying for about a week and a half now after breaking out of a $300 consolidation range.

The market is well above the 200-day EMA, and the 50-day EMA is starting to curl higher to perhaps cross the 200-day EMA, kicking off the so-called golden cross. Previously, we had seen the $4,500 level and the $4,600 level both as support and resistance, so it’ll be interesting to see how things play out once we get there.

Resilience in Gold

Ultimately, this is a market that might be a little bit stretched. We’ve had a couple of shooting stars over the course of the last week or so, but we continue to find buyers regardless. The gold market has been reviving itself recently, and the momentum seems ot be picking up as we go along. The CPI numbers could be the next big mover, depending on the result.

So, with that being the case, it is a market that has shown pretty significant resilience, and it’s likely that traders are noticing each pullback as possible value. But that is how the price action has been behaving.

Ultimately, this is a market that looks as if it’s trying to change its overall trend and is starting to accelerate. That being said, it is also likely that we will continue to see a lot of chaos coming out of the Persian Gulf, and this could paly a part as well.

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