Gold Price Analysis – Gold Continues to See Chop

The gold market continues to see a lot of headline-driven moves, so volatility will continue.

$5,100 Holds as Short-Term Support, but Gold Struggles to Go Higher

The gold market has been noisy during trading here on Thursday as we initially shot higher and then pulled back to show signs of hesitation. It looks like the $5,100 level will continue to be supported, at least in the short term. Longer-term, $5,000 is probably more important.

Gold daily chart – Price consolidates near $5,100 while the 50-day EMA rises at $4,867. Source: TradingView.

The 50-Day EMA at $4,867 Is Rising to Offer a Floor

The 50-day EMA currently sits at the $4,867 level and is rising, sooner or later offering a bit of a floor. This is still a market that you probably don’t want to short, but it is worth noting that we are struggling to go higher. Some sideways action for a while might be the best path forward, as gold had gotten a little ahead of itself.

A Break Below $4,600 Would Complete a Massive Double Top

It’s really not until we break down below $4,600 that you have to worry about gold, and that could kick off a lot of concern because we would have not only formed a double top but completed one that is huge. That measures for a $900 move to the downside, although that is far off into the distance assuming it even happens.

Range-Bound Trading Is Probably the Best-Case Scenario for Bulls

As things stand right now, a lot of back-and-forth short-term range-bound trading is probably what you can expect, and quite frankly that’s probably the best-case scenario for those who are bullish. We had gotten far too ahead of ourselves, and now we are trying to sort out whether or not gold has any business staying up here. Right now, the buyers are at least resilient enough to keep the damage to a minimum.