Gold Technical Analysis
The gold market has bounced a bit during the early part of the trading session on Friday. But with that being said, it’s also worth noting that traders are going to have to look to this through the prism of a market that is moving on interest rates and fear, sometimes pro gold, sometimes negative for gold.
But we are trying to maintain the 200-day EMA, and that, of course, is a major factor here. If we can rally from here, a break above the $4,600 level opens up the possibility of a much bigger move towards the 50-day EMA. I don’t really see that being easy, though, and I do think that the $4,600 level continues to be a bit of a ceiling. This area will remain very difficult to break above in this environment for any real length of time.
Psychological Support and Resistance
If we were to break down below the 200-day EMA, then the market is more likely than not to try to test the $4,000 level. The $4,000 level is a large, round, psychologically significant figure, and it, of course, will be a number that gets a lot of headlines.
I think you will see a lot of volatility based on interest rates in America as they are spiking, but at the same time we are going to see a lot of erratic moves based on the latest headlines and social media posts coming out about the war. So, I think we might be entering a bit of an area of consolidation with the $4,600 level being a very significant barrier that’s going to be difficult to break above.
If you’d like to know more about how to trade gold and silver, please visit our educational area.
