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Gold Price Forecast – Gold Markets Continue to Bounce Around

By:
Christopher Lewis
Updated: Feb 19, 2024, 14:21 UTC

The gold markets have continued to bounce around during the course of the trading session on Monday, although it is worth noting that it was Presidents’ Day in the United States, so therefore liquidity would be an issue.

In this article:

Gold Markets Technical Analysis

As you can see, the gold market rallied a little bit during the trading session on Monday as we have touched the 50 day EMA. The 50 day EMA is an area that of course, a lot of people will be paying attention to. And it’s also worth noting that the $2,020 level is an area where we’ve seen some noise previously as well. With that being said, I think there is a situation where the market is likely going to continue to see a lot of attention paid to that level, but once we break above that level, then it’s likely that we go even higher.

So, what I think we’ve got here is a decision where we may pull back just a little bit, but that pullback more likely than not opens up another buying opportunity. It’s worth noting that Monday was President’s Day in the United States, so liquidity may have been a little bit of an issue, and it most certainly will have been later in the day. If we break above the top of the candlestick from last week, that was so negative right around the $2,030 level. Then I think gold has a real shot at reaching the $2,075 level above. Underneath, the area that I am most interested in is between $2,000 and $1,980, as it is, in my opinion, a support zone. And of course, we have the 200-day EMA racing towards that as well, so that all comes together quite nicely.

Ultimately at this point I think you’ve got a situation where traders continue to look for value and they take advantage of it when it appears. I have no interest in shorting this market and I do think that there are plenty of geopolitical reasons to own at least some gold in your portfolio. Although I do suggest that you may get a little bit of value here on a short-term pullback that you could take advantage of in a market that has been pretty choppy, I think he is trying to build up the necessary momentum for its next move.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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