Gold Price Analysis – Gold Dances Around the Crucial 5K Level

Gold Technical Analysis

The market for gold has dropped a little bit during the early hours here on Monday to test the $5,000 level, which is an area that I think has a lot of interest paid to it, and I think it obviously is good for headlines. The question at this point is whether or not gold can continue to go higher.

I think it will eventually, but I also recognize that there has been a lot of damage done as of late so I think you’ve got this situation where people are buying the dips as they occur and just slowly pushing this market higher and the slower it is and the more sideways it is with the slightly positive tilt, the better things are going to be as it is something that is much easier to sustain.

Market Dynamics and Key Support Levels

Quite frankly, you can’t have a market that goes straight up in the air forever without serious consequences. It’s worth noting that Monday is Presidents’ Day, so liquidity would be an issue, as well as trading hours in the futures market, which has a knock-on effect on the CFD market as well. I have no interest in shorting, and if we do fall from here, the $4,800 level, the 50-day EMA, and the $4,600 level are all areas I’ll be looking for a bounce that I can take advantage of. If the market were to break above $5,150, then I think that opens up a move to the $5,400 level, but it is not going to be as quick as it was on the way up previously, which is a good thing.

If you’d like to know more about how commodity markets work, please visit our educational area.