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Gold markets rally on Friday, but failed to break out

By:
Christopher Lewis
Updated: Apr 14, 2018, 05:12 UTC

Gold markets went sideways initially during the day on Friday, bouncing around the $1336 level, but then rallied towards the $1345 level above. I see significant resistance just above at the 1003 and $50 level as well, so if we can clear that area, the market should be free to go much higher.

Gold daily chart, April 16, 2018

Gold markets went sideways in general, showing a lot of choppy trading during the trading session on Friday. The $1336 level has offered a significant amount of support, and then rallied towards the $1345 level. I think that if we can break above the $1350 level, the market should be free to go much higher, perhaps reaching towards the $1400 level. I like the idea of buying golden bits and pieces and looking at short-term pullbacks as an opportunity to pick up value in what should be a positive market based upon the longer-term charts. That’s not to say that we will break out rather quickly, just that we will eventually find a reason to go higher.

If we can break above the $1400 level, then I think the market has a relatively clear path to the $1800 level above, and then even the $2000 level after that. I like the idea of short-term pullbacks to pick up bits and pieces of gold as it gives us an opportunity to build up a large position for that break out. I believe that the market participants will continue to look at this as a way to get away from the greenback, and of course a way to play the entire situation between the United States and China and a potential trade war. Recently, we have seen higher lows, and that of course is a very important signal as to where we could go next.

Gold Prices Video 16.04.18

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.

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