Gold markets continue to go back and forth during the trading session on Tuesday, as we struggle with a significant resistance barrier just above.
Gold markets went back and forth during the trading session on Tuesday, as we continue to see a lot of volatility. The $1325 level above offer significant resistance, and I think it is only a matter of time before we break out. We may need to build up enough momentum, so that of course lends itself to see several pullbacks. I think the 20 day EMA, pictured in green and currently sitting around the $1300 level, should be a major support level.
If we can break above the shooting star from last week, that is reason enough to go long as well, as it would be a fresh, new high, and we would have broken above a significant resistance barrier in the form of a couple of shooting stars. At that point, I anticipate that the market would go looking towards the $1350 level, maybe even the $1400 level after that.
If we did break down below the $1300 level, then I think the market would probably go looking towards the $1275 level underneath, where this latest move began. There is also the 50 day EMA in that general vicinity, so I think it would probably be a major turn of events. Below there we have the 200 day EMA at the $1250 level, which of course is what a lot of people use for the longer-term trade, but quite frankly if we get that low a lot of technical damage would have been done at that point. Remember, the Federal Reserve looks a little bit on the dovish side at this point, so that should continue to offer a bit of strength to precious metals overall.
Please let us know what you think in the comments below
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.