Advertisement
Advertisement

Gold Markets Continue to Struggle Between the Moving Averages

By:
Christopher Lewis
Updated: Feb 2, 2022, 16:44 UTC

Gold markets have gone back and forth during the course of the trading session on Wednesday as we continue to bounce around between the 50 and the 200 day EMA indicators.

Gold Markets Continue to Struggle Between the Moving Averages

In this article:

Gold markets have gone back and forth during the course of the trading session on Wednesday in order to show signs of hesitation yet again. We are mildly positive, but nothing to get overly excited about. Because of this, I will pay close attention to the 50 day EMA, because if we can break above it, that could send this market higher. On a break above that 50 day EMA, then it is likely that we could go looking towards the gap above, which is quite common for futures markets.

Gold Price Predictions Video 03.02.22

That being said, if the market breaks down below the lows of the trading session on Wednesday, that could open up a move down to the $1780 level which has been significant support. That support being broken would open up significant selling pressure, perhaps sending the market down towards the $1750 level. In general, this is a market that I think continues to see a lot of volatility, and of course there is still the huge negative correlation between the US dollar and gold as well, so you need to pay attention to the US Dollar Index. The market will almost certainly continue to see a lot of volatility, especially as we get close to the end of the week.

All things been equal, this is a market that has been very noisy and will continue to be as we have central bank meetings in England and the European Union on Friday, right along with the jobs number in America. In other words, there are a lot of things to throw this market around over the next couple of days.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

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.

Did you find this article useful?

Advertisement