The gold market has been bullish early on Wednesday, as we are threatening the crucial $4500 level, an area that has been important more than once in the past.
Gold
The gold market has rallied a bit during the trading session on Wednesday as we are looking at the $4,500 level above as resistance over the last week. If we could break above there, it would be a significant sign of strength and could open up even higher levels.
We have been jumping for a while only to go sideways just below this barrier and form a bullish flag. The 50-day EMA is starting to reach above the 200-day EMA, kicking off the golden cross.
Gold daily chart shows price consolidating below $4,500 as the 50-day EMA approaches the 200-day EMA. Source: TradingView.
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Ultimately, this is a market that I think is going to continue to have to watch a lot of external factors, not the least of which would be the conflict in the Middle East and the idea of energy inflation. But at the same time, traders are starting to cut bets that the Federal Reserve might not be hiking at all this year, and that is a huge swing from just a couple of months ago when there were concerns about multiple interest rate hikes.
With this, the market looks very likely to continue to be noisy, choppy, and indecisive. But it must be said that recently the buyers seem to be very resilient. It’ll be interesting to see how this plays out. We’re at a major point of inflection in the US dollar at the same time.
The Next Impulsive Move
So definitely a market worth watching. It’s definitely one that has an interesting place right here. The next impulsive move could give us a heads-up for the next bigger move, and the next potential trend in this market.
