Gold Markets Testing 200 Day EMA

Gold markets have gapped lower to kick off the trading session on Thursday to show a very negative turn of events. Furthermore, we have slashed much lower to break down below the 200 day EMA. The $1800 level has been important more than once, and therefore it makes a certain amount of sense that we have bounced about that area. The 200 day EMA also sits right around the same area as well, and therefore I think that we are probably going to see a lot of noisy behavior in the short term.

Gold Price Predictions Video 28.01.22

Keep in mind the US dollar strengthening can work against the strength of the gold market as well. All things being equal, this is a market that will continue to be noisy in general, and as a result I think what we have is a situation where short-term rallies may get faded, but you should also keep in mind that gold has a certain amount of safety attached to it as well. In other words, I think this sets up for a relatively chaotic market going forward.

If we break down below the lows of the day for Thursday, we could go looking towards the $1780 level. On the other hand, if we can turn around a break above the top of the gap at the $1830 level, it is likely that we go much higher. If we can break above there, the market is likely to go much higher based upon an extreme move to the upside and of course a lot of momentum coming into the picture.

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