Gold Price Analysis – Gold Continues to See Intraday Pattern

Gold Technical Analysis

The gold market initially rallied during the trading session on Friday again, but as we’ve seen multiple times now, it looks like the Asians are buying gold and the Europeans are selling it. This is an interesting dichotomy between the 2 regions, but there’s also a cultural aspect as a lot of Asians save gold. They save in gold, it’s a cultural thing for huge parts of that world, so maybe that’s part of what’s going on.

Key Support and Resistance Levels

I believe if we were to break down below the $5,000 level, then we have to look at the 50-day EMA as potential support. After that we could look at $4,600. All things being equal, this is a buy on the dip type of market. I don’t have any interest in getting too cute here. I believe that if we were to turn around and break above the $5,200 level, then it could open up the possibility of a move to the $5,500 level.

I do believe that the market is still bullish longer term, but we are trying to come to grips with the fact that we had such a wild move to the upside. Because of this, I’d like to see the market come back to lower levels, bounce a bit, so that I can take advantage of it.

I have no interest whatsoever in shorting gold, at least not until we get below $4,600. Really, at that point in time, you’re probably better off just buying the US dollar. It’s essentially the same thing in that scenario, so shorting currencies against the dollar, you don’t have to worry about some of the volatility that comes in the futures markets.

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