Gold Markets Pierce the Top of the Previous Daily Range

Gold Market Technical Analysis

Gold markets have rallied a bit during the trading session on Tuesday to break above the top of the shooting star from the Monday candlestick, which of course showed just how much resistance there is near the $1970 level. We had broken above there momentarily during the trading session on Tuesday but gave back some of the gains in order to show signs of exhaustion. The market continues to try to break out above the area, but it looks as if it continues to run into a lot of problems.

If we break down below the $1950 level, then it is possible that we could go down to the 50 Day EMA. The 50 Day EMA is at the $1916 level and is starting to rise. All things being equal, this is a market that on dips there should be buying opportunities, as gold has been so strong. In fact, it is not until we break down below the $1880 level that I would be concerned about the overall health of gold.

Looking at this chart, if we can break above the $1970 level, it opens up a move to the $2000 level, which then opens up a move to the $2050 level. I believe that this market will continue to be very noisy, and therefore I think you need to be cautious about your position size. “Buying on the dips” continues to be the way I approach it and judging by the way the candlestick has reacted early in New York trading, you can see why. I have no interest in shorting this market until we break significantly below the $1880 level.

Gold Price Predictions Video 13.04.22

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