Gold markets have gone back and forth during the course of the trading session on Thursday as we continue to struggle with the $1900 level.
Gold markets have gone back and forth during the course of trading on Thursday, as the Wednesday candlestick ended up forming a bit of a shooting star at this crucial $1900 level. At this point, the market pulling back from here could send the market down towards the $1850 level. That is an area where it has been important more than once, and of course the downtrend line underneath there also looks like it is going to be supportive.
The 50 day EMA has broken above the 200 day EMA and what is known as a “golden cross”, so that of course is something worth paying attention to as well. I think gold probably gets a bit of a pullback where we start to ask more significant questions near the $1850 level. At that point, we will probably have a lot of questions asked, and therefore you will have to pay attention to the US dollar. The US dollar of course does run counter to gold, as gold markets are denominated in that currency.
On the other hand, if we break above the shooting star from the trading session on Wednesday, then it is likely that we could go looking towards $1950 level, possibly even towards the 2100 level over the longer term. We are a little extended though, so I do like the idea of buying pullbacks when we get some type of supportive candlestick that shows we are ready to go higher. In general, I think this is a market that continues to be noisy, but we have a lot of questions asked about yields in America and therefore I think all things being concerned, we have a couple of tough sessions ahead of us.
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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.