Gold Markets Find Buyers on Dips

Gold Technical Analysis

Gold markets have pulled back a bit during the trading session on Thursday to reach the lows of the Wednesday session. That being said, the market turned around to show signs of strength and it has formed a major hammer. By breaking above the top of the hammer, it is likely that we could go towards the high of last week, and therefore if we can break above there, it would open up a bigger move to the upside, perhaps sending the market to the $2000 level.

The $2000 level is a large, round, psychologically significant figure and a lot of people will be paying close attention to it. Because of this, the market will continue to be more of a “buy on the dip” type of situation from what I can see, with the $1900 level offering significant support. The 50 Day EMA in that general vicinity also adds a little bit more in the way of support, not to mention the fact that we have formed a bit of a “double bottom” in the daily chart.

Looking at this chart, it appears that we are consolidating currently, trying to figure out which direction we are going to go long term. A breakdown would obviously be a big deal, as it could open up a move all the way down to the $1850 level, but we would almost certainly need to see the US dollar strengthen considerably to make that happen. The only thing I think you can count on during the Friday session is a lot of choppy behavior, mainly due to the fact that the jobs number will throw chaos into the picture as well.

Gold Price Predictions Video 01.04.22

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