Gold Price Analysis – Gold Recovers from Initial Selling

Gold Technical Analysis

Gold markets have been pretty negative, actually, during the trading session on Monday, which probably caught a lot of people off guard, but the real culprit here is probably the US dollar.

With that being the case, I think it’s interesting that we fell all the way down to the 5,000 level but have turned around quite drastically as we headed into the New York session. I think what this tells me is that, at the end of the day, the gold market is still trying to sort out what to do.

With that being the case, I think you have a situation where short-term pullbacks continue to be buying opportunities and I do think that the longer-term uptrend is probably still intact, but that doesn’t necessarily lend itself to an easy move.

Technical Support and Targeted Levels

You can see that the market is trying to reach the 5,500 level, but that may take some time. If we were to break down below the 5,000 level, then the 50-day EMA gets targeted. Anything below there opens up the possibility of a move down to the 4,600 level, which I think is significant support, and if we were to break that, it could change a lot of things.

As things stand right now, though, it looks like we’re just simply trying to figure out the next move, and therefore short-term back and forth trading is probably what you are going to get here more than anything else.

The gold market has a bit of a bid due to fear but at the same time is a little bit pressured due to the fact that the US dollar is catching a bid simultaneously, so I think you will get more sideways action at this point than anything else.

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